According to the latest figures from IHS Markits games market research, the console market suffered a decline in 2016, with total market value suffering a drop as compared to figures from 2015. The console market amounted to around $34.7 billion in 2016, while the 2015 total was around $35.6. This amounts to a total drop of around 2.5%. The drop was a result of reduction in console prices, including the PlayStation 4 and Xbox One, as well as a reduction in sales of consoles. The worlds total console hardware spending also suffered a declining, dropping from $12.8 billion in 2015 to $10.5 billion in 2016.
However, games content spending has increased, with physical media and digital content reached a sales value of $21.6 billion, an increase of 5.6% as compared to 2015. Sales value of subscriptions like PS Plus also grew significantly, with the total spending on platform subscriptions reaching all time high of $2.8 billiom, up 14% as compared to 2015. IHS Markit also provided some more good news, forecasting an overall market value growth of 4.1%, equivalent to $32.6 billion. The Nintendo Switch and growing digital business is expected to fuel this growth.
Getting to the point, IHS Markits research has unvieled Sony as the top dog, with a 57% share in the console market and a consumer spending of $19.7 billion on their products including console hardware, games and services like PS Plus. Sonys succesful streak is expected to continue across 2017, with the tech giant set to break the console market sales value of $20 billion.
Sony’s flagship console, the PS4, dominated the console market, amounting for almost double the sales value of hardware, content and services as compared to Microsoft. The PS4s base was a staggering 53 million, compared to Xbox Ones measly 27.6 million. The PS4 also made up an overwhelming 51% of the total console market, with the Xbox One following up at a share of 26%. Nintendo, meanwhile, had a comparatively small share of the market, around 8%, with their 3DS and its 2D variants.
But IHS Markit expects Nintendo to make a comeback, with sales rebounding due to the recent of their newest console, the Nintendo Switch. Microsofts fortunes are also expected to rebound with the launch of the Xbox One Scorpio, which they describe as ‘the most powerful console of all time’, in late 2017.
