“There isn’t space for more than two primary console systems”
The analysis and consulting organization DFC Intelligence has unveiled its 2024 market report and projection this week for the gaming industry, underscoring a “substantial risk” facing Xbox and PlayStation when it comes to next-generation consoles.
According to the organization, Nintendo is expected to dominate the next generation in terms of console sales, forecasting between 15 to 17 million units sold in 2025, and exceeding 80 million by 2028. In contrast, Xbox and PlayStation may find one of them “struggling significantly” in the console market, as there is typically not enough space for more than two major platforms in the long term.
“There isn’t space for more than two primary console systems. Sony or Microsoft will struggle significantly in a distant third place – largely depending on which of those companies can establish early momentum.”
Here’s a glimpse at DFC Intelligence’s forecasts for the upcoming years:
Despite this, the firm anticipates that the industry will achieve “substantial revenue growth in the latter half of the decade,” predicting the game software market to expand to $83 billion by 2028, while the total console and PC market could reach $203 billion in the same year. This is noteworthy considering the “post-COVID decline” observed in recent years.
Clearly, we have begun to witness Xbox shifting away from a console-centric focus in current narratives, particularly with the recent “This is an Xbox” marketing campaign. It has already been confirmed that Phil Spencer and his team are developing new hardware for the next generation, but Xbox’s future success will undeniably rely on more than just consoles.
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Fraser serves as the News Editor at Pure Xbox, where he dedicates his time to reporting on the significant developments in the Xbox realm and beyond.