This week, two contrasting news stories leave us wondering about the state of the industry. The first refers to the end of the production of Xbox One in all its versions by Microsoft: the company announced that it will focus on Xbox Series X and Series S from now on. On the other hand, we have the opposite news on PlayStation: Bloomberg reports that Sony has instructed its assembly partners to continue with the production of PlayStation 4, to alleviate the shortage of PlayStation 5 among its consumers.
What’s the matter? On the Xbox side, Phil Spencer recently mentioned in an interview for the New York Times that the company’s current generation of consoles, namely the Xbox Series X and Xbox Series S, are selling faster than any previous generation. from Xbox. Although Series X is difficult to find, Series S is easily findable.
Quite the opposite is the case with the PlayStation 5. The console is hard to come by, and it’s sold out. As Bloomberg reports, the company had planned to stop production of the PS4, but has now asked its assemblers to continue production to alleviate the PS5 shortage, which would translate into fewer sales. As Bloomberg mentions, this is a deal between Sony and the assemblers to ensure continuity of contracts and profits for both.
So what’s up? Is Sony in crisis for producing an old console and Microsoft in abundance for concentrating on its modern consoles? Not quite. Referring to the sales table, the situation has not changed one iota since the start of the pandemic. Nintendo remains strong in all markets and is the world’s best-selling console month after month. PS5 increasingly sells better, although it still does not reach its numbers, but if you add those of the PS4 it almost reaches 400 thousand units, not bad. Finally, Xbox Series X and S are behind both, and Xbox One sales are almost negligible.
This means that, in essence, it is no longer convenient for Xbox to continue the production of its old consoles, because about 6 thousand extra units no longer justify their manufacture. Sony still uses the PS4 as compensation for the chip shortage, which has led to a shortage for all current-gen consoles. The numbers in Japan in particular are strong for the PS4, while the PS5 struggles in that country. Therefore, it has all the logic in the world to continue offering such a console.
What will happen this year? You already have to admit it. Switch will be the king of this generation. It is indisputable. The pandemic is not going to end anytime soon, and as long as the economy does not return, it is impossible for Sony and Microsoft consoles to dominate the market. This is the reality. Worse still, the year is coming strong for Nintendo, with Kirby and the Forgotten Land, Bayonetta 3 Y Breath of the Wild 2 to complete the life cycle of the console. Nintendo Has Dominated – Now, it’s time to think about what’s next. Meanwhile, Microsoft and Sony must consolidate their market shares, and rethink the concept of a high end console for a pandemic future.