Consumer-facing console sales have grown in 2021, driven by the release of new devices from the three major manufacturers, but sales growth has been hampered by a lack of supply over the past two months for Sony’s PlayStation 5, Microsoft’s Xbox Series X and Nintendo Switch OLEDs. significant hindrance.
Shortages will continue into 2022, and while there is optimism that component availability and supply chain efficiency will improve later this year, the situation remains unpredictable.
Now that Switch sales have reached 100 million units, Nintendo has outlined the next phase of its Switch sales strategy, which is to convert existing Switch households into households with multiple Switches. The release of the Switch OLED prompted existing flagship users to upgrade and enhance features to support this strategy.
PS5 lags PS4 due to Q4 supply constraints
Sony ends 2021 with cumulative PS5 sales of 17 million units, about 1.6 times the sales of the Xbox series. At this early stage, the impetus for global sales came from Sony, but its potential has been dented by product availability.
The Rise of the Xbox Series S
By the end of 2021, cumulative sales of Microsoft’s Xbox line of devices will reach 10.5 million units. That’s on par with the previous-generation Xbox One. Similar to Sony’s PS5, there is a severe shortage of Microsoft’s high-end X-series devices, which has somewhat diminished its potential in the market. Microsoft is also using X-Series components to upgrade its cloud gaming servers, putting extra pressure on consumers of its flagship consoles.
Microsoft has managed to partially alleviate the Series X shortage with its dual product strategy. Availability of the cheaper, less powerful Xbox Series S is much better, and along with Xbox Game Pass, has fueled the unprecedented popularity of this digital-only device. Ampere estimates that the Series S will lead the Series X in cumulative sales by the end of 2021.
