According to Money DJ, citing the latest data from Japanese gaming media Famitsu, overall console sales in Japan (including Switch, PS5, and Xbox Series X/S) dropped 19% to 79,962 units during the week of September 2-8, compared to the previous week (August 26-September 1), driven by a sharp decline in PS5 sales.

Famitsu reports that sales of Nintendo’s Switch series (standard Switch, Switch Lite, and OLED Switch) rose 6% week-over-week to 67,473 units. The standard Switch saw a 14% drop to 5,723 units, while Switch Lite sales jumped 12% to 15,271 units, and OLED Switch sales increased 7% to 46,479 units.

Sony’s PS5 series (standard disc version and digital edition) saw Japanese sales plunge nearly 70% during the same week, hitting a new low for 2024. Total PS5 sales slumped 67% to 11,007 units. The standard PS5 dropped 66% to 9,097 units, and the digital edition saw a 73% decline to 1,910 units.

Meanwhile, Microsoft’s Xbox Series X/S sales in Japan surged 90% week-over-week to 1,482 units, with Xbox Series X sales jumping 87% to 759 units and Xbox Series S up 94% to 723 units.

Sony Interactive Entertainment (SIE), Sony’s gaming subsidiary, announced on August 27 that it would raise PS5 prices in Japan starting September 2. The standard PS5 price was hiked 19% (an increase of ¥13,000) to ¥79,980, while the digital edition saw a 21% increase (also ¥13,000) to ¥72,980.

Meanwhile, rumors of a new Nintendo console have been making the rounds. According to Notebookcheck, leaked details regarding the price and launch date of the anticipated Nintendo Switch 2 have surfaced, fueling speculation that Nintendo could be gearing up for another blockbuster release.

(Photo credit: Sony)

Sales of gaming consoles underwent palpable growth in 1H21 thanks to the release of new consoles as well as demand that had previously been deferred in 2020 due to material shortages. Moving into 2H21, however, disruptions in logistics/transportation and the further spread of the COVID-19 pandemic led to less-than-expected sales volumes during the holiday season, estimated in total annual sales of 51.257 million consoles for the whole 2021. While the Nintendo Switch remained the market leader with sales of 26.19 million units, about 14.31 million units of the Sony PS5 were sold, compared to 8.14 million units of the Microsoft Xbox Series X|S.

As the aforementioned issues related to the pandemic, logistics, and shortages gradually become resolved, TrendForce expects gaming console sales for 2022 to reach 57.94 million units, a 13% YoY increase. Although the Switch will likely retain its market leadership, sales will hold flat and begin to show signs of decline, as the console enters its fifth year. TrendForce expects Nintendo to release a refreshed version of the Switch console in early 2023 in response to gradually declining sales.

After expanding the PS5 user base, Sony is expected to make a heavy push for its next-gen VR products, the PS VR 2, which will likely be released at the end of 2022. At the same time, Sony will continue to strengthen the development of both games with VR content and VR-related accessories, which can further improve the gaming experience of PS VR users. Microsoft, on the other hand, has placed an emphasis on not only its Xbox Cloud Gaming streaming service, but also the acquisition of game development studios to increase its exclusive game titles, attract consumers, and weaken its competitors. Hence, Microsoft may potentially release its own affordably priced game streaming boxes this year to be used in conjunction with cloud-based game streaming services. However, due to the nature of Xbox Cloud Gaming as a cross-platform service compatible with, among other devices, the previous-gen Xbox One, consumers may in turn be less willing to purchase the Xbox Series X|S, thereby lowering annual sales of these consoles and widening the sales gap between the Series X|S and their competitors.

Switch-like handheld gaming consoles will continue to appear

Rising sales of the Nintendo Switch consoles have led other brands to release similar products in response. In addition, the barrier to entry in the handheld gaming console market has been significantly lowered now that Qualcomm is able to supply chips, reference designs, and dev tools. With brands now willing to cross over to this space, the market may see the emergence of multiple Switch-like handheld gaming consoles in 2022.

Unlike prevailing gaming consoles which have closed ecosystems, products such as the Steam Deck are based on open platforms that are compatible with gaming contents and streaming services available on PCs and mobile devices. As such, these handheld gaming consoles are not an absolute requirement for consuming game content, and consumers may still prefer using their existing PCs or mobile devices for such content.

As well, brands that look to release their own handheld gaming consoles will not look to compensate for reduced hardware profitability through software sales. As a result, these consoles will be priced relatively high, at an expected US$399 and up, which may negatively affect consumers’ willingness to purchase them. Even if certain brands make an attempt at handheld gaming console production, sales of these consoles are expected to remain mediocre, without making much of an impact on the current gaming console market.

（Image credit: Pixabay）