Sony dominates console market with 57% share worldwide

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Sony dominates console market with 57% share worldwide

Tags: 3DS, Microsoft, nintendo, PlayStation 4, Sony, Wii U, Xbox One

The PlayStation 4 Pro in its vertical stance.

Above: The PlayStation four Professional in its vertical stance.

Picture Credit score: Sony Interactive Leisure

Sony dominated the sport console , software program, and repair market in 2016, capturing a complete of 57 % share, or $19.7 billion of spending by players, in response to market researcher IHS Markit.

Sony is anticipated to proceed this run in 2017 with general gross sales anticipated to rise above $20 billion due to progress of digital console video games.

However IHS famous that the general console recreation market shrank in 2016, and Nintendo is newly aggressive this yr with the launch of the Change recreation console on March three. Microsoft can be anticipated to rebound from a decline in 2016 with extra digital gross sales and the launch of Challenge Scorpio by the top of 2017.

The general console market hit $35 billion in revenues in 2016, counting , software program, and providers. Sony’s share was nearly double that of Microsoft and its Xbox One. The PS4 ended 2016 with an put in base of 53 million consoles offered thus far, in comparison with 27.6 million for the Xbox One.

Sony's PlayStation 4 dominates the market.

Above: Sony’s PlayStation four dominates the market.

Picture Credit score: IHS

The PS4 was liable for $17.eight billion of gross sales worth, or 51 % share of the overall console market with Microsoft’s Xbox One at $9.1 billion and a 26 % share. Nintendo’s 3DS platform (and its variants together with the 2DS) was a distant third on the listing with $2.6 billion of market worth or eight % share of the market.

The general console , software program, and providers market shrank 2.5 % to $34.7 billion in 2016, however it’s anticipated to develop four.1 % to $36.2 billion in 2017. The Change and rising digital enterprise for all corporations is anticipated to drive the turnaround.

Sony is leading the console war against Microsoft and Nintendo.

Above: Sony is main the console conflict towards Microsoft and Nintendo.

Picture Credit score: IHS

The drop was a results of decreased gross sales quantity for console and a discount in costs for consoles, together with Sony’s PS4 and Microsoft’s Xbox One. World console spending in 2016 fell to $10.5 billion from $12.eight billion in 2015.

Video games content material spending helped mitigate the decline in spending, as each bodily media and digital content material mixed reached gross sales worth of $21.6 billion, up 5.6 % on 2015. Gross sales worth of platform subscriptions additionally elevated considerably as Sony’s PS4 put in base grew, including recent subscribers to the market. Shopper spending on console platform subscriptions reached a report $2.eight billion, up 14 % from 2015.

Sony leads in digital game sales.

Above: Sony leads in digital recreation gross sales.

Picture Credit score: IHS

Nintendo’s consoles held simply 5 % share of the digital video games content material enterprise on consoles in 2016 at $397 million, down from 7 % in 2015 as a result of a scarcity of recent full video games and paid downloadable content material releases. This market share decline will sluggish in 2017 as digital spending on Nintendo consoles will increase as soon as once more following the launch of the Change and begin to rebound in 2018 based mostly on present Nintendo Change gross sales forecasts.

In distinction, Sony and Microsoft delivered important positive factors in digital video games content material spending throughout their completely different consoles. Sony’s digital video games content material enterprise is now value $four.four billion excluding platform subscriptions and is forecast to interrupt the $5 billion mark throughout 2017.

Each corporations are evolving their digital video games content material monetization methods, with Microsoft just lately saying its Xbox Video games Move provide and Sony confirming that PS4 titles will likely be coming to its PlayStation Now streaming service in 2017, driving a share of catalog enterprise into new subscription providers.

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