Xbox One S And The PlayStation 4 Pro Did Not Generate Dollar Spending Growth Says NPD Analyst

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The NPD group just released its latest report for the month of December which also included the top selling games for the entire year. This time around the report came with a new disclaimer stating.

“provides both online and retail sales results for new physical video game products, as well as a subset of full-game digital downloads from participating publishers in NPD’s digital panel. It is not intended to cover total market/total consumer spend.”

If the recent report is any indication it seems that total video game sales which consist of hardware, software, and accessories went down by  15 percent year-over-year from $3.2 billion to $2.7 billion in the US during December.Hardware was by far the biggest loser as it went down from $1.24 billion in December 2015 to $994.9 million in December 2016. This is a staggering decrease and according to  NPD analyst Sam Naji this was due to the disappointing sales performances of both the Xbox One S and the PS4 Pro

[T]he release of the Xbox One S and the PlayStation 4 Pro did not generate dollar-spending growth,” said  Sam Naji. “Although the combined [average retail price] for the Xbox One and PlayStation 4 systems decreased by 15 percent, consumers bought seven percent fewer units.”

Even though Sony has ceased commenting on NPD sales reports we already know that the console came out on top when compared to the Xbox One , with the Uncharted 4 bundle selling like hotcakes. Microsoft had also hinted previously that they had a pretty good December and that they actually performed better than their counterparts in the latter half of 2016. this time around we learned that the Xbox One saw a 10% increase in number of units sold when compared with the statistics of last year.

2016 was indeed a tough year for hardware spending and the stats reflect that , according to analyst Sam Naji

“The category was down 24 percent as unit sales and the average retail price for consoles declined compared to 2015”

So it seems that most of the reports we were seeing recently were correct and the console market is indeed headed towards a decline. A big reason for that is the emergence of smartphones and free to play games like League Of legends which are eating into a sizable chunk of the console market.Let us know your opinions about the recent decline in hardware sales by commenting in the comments section below.

 

 

  • datdude

    Uhhh…does this report factor in the nonexistent sales of Nintendo consoles? Also, hard to draw definitive conclusions from a report that only factors in one territory, instead of global trends.

    I picked up a Pro, and I will pick up a Scorpio because despite also gaming on pc, I spend a lot of time gaming on consoles, and those consoles will offer the best picture quality with HDR (and hopefully at some point advanced audio settings) for the equipment I have. Many people don’t yet have 4k HDR televisions, so why would analysts expect so many people to buy the Pro at this stage? I’m sure Sony wasn’t “expecting” the pro to do monster numbers, yet having said that, the Pro was the 3rd best selling console OF THE ENTIRE YEAR on Amazon, trailing only the PS4 slim and PS4 original. It beat the Xbox One S, which came in at number 4. So…………not too shabby.

  • Marty8370

    Scorpio will be DOA……….lol