Welcome!

News Feed Item

IDC Predicts Microsoft Will Unbundle Kinect and Xbox One Next Year, Sony's PlayStation 4 Wins the Eighth Generation Game Console Race

A new packaged video game and entertainment console forecast from International Data Corporation (IDC) concludes that competitive pressures will lead Microsoft to unbundle the Kinect sensor from its Xbox One console in 2015, Nintendo's Wii U will receive the equivalent of a $50 price cut worldwide in late 2014 or early 2015, and Sony's PlayStation 4 (PS4) will emerge with the largest global installed base of any console by the end of 2016.

The forecast additionally expects that, together, eighth generation consoles – Xbox One, Wii U and PS4 – will generate about 10% less retail revenue from console hardware and disc-based games than did seventh generation consoles – Xbox 360, Wii and PlayStation 3 (PS3) – combined through their first six years on the market. Total eighth generation console hardware revenue is projected to be above the comparable seventh generation total at the end of this period as a result higher average selling prices (ASPs). Disc-based software revenue is expected to be far lower. The number of eighth generation game discs sold to retailers (sell-in) is, in fact, projected to be 45% below the seventh generation total through six years of availability.

If digital games and related online console revenue streams are included in the picture, however, the outlook for eighth generation consoles improves substantially. The inclusion of digital console game spending, subscription revenue and other content/service/app purchases billed through online eighth generation console stores pushes total revenue up to within a few percent of the seventh generation total through the first six years of availability. Rising digital revenue is forecast to nearly offset the fall in disc-based revenue.

"If Microsoft unbundles the Kinect sensor from the Xbox One console as we expect in 2015, this should lead to rough price parity with the PS4 and reset the sales dynamic at retail," explained Lewis Ward, Research Director, Gaming at IDC. "We project this change will lead to enough of a console sales bump that Xbox One will emerge with the largest installed base of any console in North America by the end of 2016. The PS4 should still lead globally, but the unbundling of Kinect and Xbox One should move the sales needle enough to give Xbox One the installed base edge in the United States and Canada before the end of 2016."

Other key findings from IDC's Worldwide Video Game and Entertainment Console Hardware and Packaged Software 2014-2018 Forecast include the following:

  • Microconsoles (digital-only devices such as Amazon Fire TV that support TV-based gaming) aren't considered in the forecast, but it appears that these devices will only erode demand for disc-playing consoles at the margins in the next few years.
  • China remains the biggest global wild card; despite the console ban repeal, early indicators suggests that eighth generation consoles will face large barriers to success in China.
  • Revenue is shifting towards developing economies despite limited Chinese demand; North American console gamers' share of all console hardware and disc-based spending, for example, is forecast to slip 5% from 2014 to 2018.

The new forecast, Worldwide Video Game and Entertainment Console Hardware and Packaged Software 2014-2018 Forecast (IDC Doc #248241), includes a breakout of console hardware and disc-based software sales to retailers (sell-in) for North America, Western Europe, Asia/Pacific and a combined rest of the world (ROW) region. Installed bases for the major console families are also forecast in the 73-page report, as is the number of unique console gamers and their average annual spending on console software.

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community to make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. In 2014, IDC celebrates its 50th anniversary of providing strategic insights to help clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com.

All product and company names may be trademarks or registered trademarks of their respective holders.

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
"We were founded in 2003 and the way we were founded was about good backup and good disaster recovery for our clients, and for the last 20 years we've been pretty consistent with that," noted Marc Malafronte, Territory Manager at StorageCraft, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
DX World EXPO, LLC., a Lighthouse Point, Florida-based startup trade show producer and the creator of "DXWorldEXPO® - Digital Transformation Conference & Expo" has announced its executive management team. The team is headed by Levent Selamoglu, who has been named CEO. "Now is the time for a truly global DX event, to bring together the leading minds from the technology world in a conversation about Digital Transformation," he said in making the announcement.
"We've been engaging with a lot of customers including Panasonic, we've been involved with Cisco and now we're working with the U.S. government - the Department of Homeland Security," explained Peter Jung, Chief Product Officer at Pulzze Systems, in this SYS-CON.tv interview at @ThingsExpo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"We're here to tell the world about our cloud-scale infrastructure that we have at Juniper combined with the world-class security that we put into the cloud," explained Lisa Guess, VP of Systems Engineering at Juniper Networks, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"Peak 10 is a hybrid infrastructure provider across the nation. We are in the thick of things when it comes to hybrid IT," explained , Chief Technology Officer at Peak 10, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"I will be talking about ChatOps and ChatOps as a way to solve some problems in the DevOps space," explained Himanshu Chhetri, CTO of Addteq, in this SYS-CON.tv interview at @DevOpsSummit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"We are focused on SAP running in the clouds, to make this super easy because we believe in the tremendous value of those powerful worlds - SAP and the cloud," explained Frank Stienhans, CTO of Ocean9, Inc., in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
While the focus and objectives of IoT initiatives are many and diverse, they all share a few common attributes, and one of those is the network. Commonly, that network includes the Internet, over which there isn't any real control for performance and availability. Or is there? The current state of the art for Big Data analytics, as applied to network telemetry, offers new opportunities for improving and assuring operational integrity. In his session at @ThingsExpo, Jim Frey, Vice President of S...
"As we've gone out into the public cloud we've seen that over time we may have lost a few things - we've lost control, we've given up cost to a certain extent, and then security, flexibility," explained Steve Conner, VP of Sales at Cloudistics,in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Your homes and cars can be automated and self-serviced. Why can't your storage? From simply asking questions to analyze and troubleshoot your infrastructure, to provisioning storage with snapshots, recovery and replication, your wildest sci-fi dream has come true. In his session at @DevOpsSummit at 20th Cloud Expo, Dan Florea, Director of Product Management at Tintri, provided a ChatOps demo where you can talk to your storage and manage it from anywhere, through Slack and similar services with...
The financial services market is one of the most data-driven industries in the world, yet it’s bogged down by legacy CPU technologies that simply can’t keep up with the task of querying and visualizing billions of records. In his session at 20th Cloud Expo, Karthik Lalithraj, a Principal Solutions Architect at Kinetica, discussed how the advent of advanced in-database analytics on the GPU makes it possible to run sophisticated data science workloads on the same database that is housing the rich...
"At the keynote this morning we spoke about the value proposition of Nutanix, of having a DevOps culture and a mindset, and the business outcomes of achieving agility and scale, which everybody here is trying to accomplish," noted Mark Lavi, DevOps Solution Architect at Nutanix, in this SYS-CON.tv interview at @DevOpsSummit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"We are an IT services solution provider and we sell software to support those solutions. Our focus and key areas are around security, enterprise monitoring, and continuous delivery optimization," noted John Balsavage, President of A&I Solutions, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"We want to show that our solution is far less expensive with a much better total cost of ownership so we announced several key features. One is called geo-distributed erasure coding, another is support for KVM and we introduced a new capability called Multi-Part," explained Tim Desai, Senior Product Marketing Manager at Hitachi Data Systems, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
There is a huge demand for responsive, real-time mobile and web experiences, but current architectural patterns do not easily accommodate applications that respond to events in real time. Common solutions using message queues or HTTP long-polling quickly lead to resiliency, scalability and development velocity challenges. In his session at 21st Cloud Expo, Ryland Degnan, a Senior Software Engineer on the Netflix Edge Platform team, will discuss how by leveraging a reactive stream-based protocol,...