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Playstation, Xbox Console Sales Down

Sales of ageing gaming consoles are down as the current generation of machines begin to reach the end of their cycle and gamers prepare for the launch of cloud gaming services.

Sony, Microsoft, and AMD have all reported a slump in the console gaming industry that’s hurting their bottom line.

Sony reported an US$88.4 million drop in profit within its gaming business, but losses have been offset by huge gains in imaging, which recorded more than US$455 million profit for Q2 2019.

The Japanese company makes many of the image sensors used in smartphones.

Chief financial officer Hiroki Totoki told a recent earnings briefing the company’s sensor production facilities “have been operating at full capacity”, according to Reuters.

Earlier this month, Microsoft reported a 10 per cent drop in overall gaming revenue, with Xbox hardware sales almost halving.

AMD, who supply the chips used in Xbox and Playstation consoles, have also been impacted by poor console sales with the division housing the company’s custom chip production dropping 12 per cent.

The company’s revenue for the quarter fell 13 per cent compared to last year according to Bloomberg.

Nintendo bucked the trend, reporting an increase in sales for its hybrid-handheld Switch console last quarter with 2.1 million sales, a 13 per cent year-on-year increase that brought the console’s total sales past 36 million.

But the company’s profits dropped 10 per cent on the back of increased costs.

Nintendo is soon to release the handheld only Switch Lite to replace the 8-year-old 3DS.

The Playstation 4 and Xbox One both launched at the end of 2013, meanwhile the Switch only hit the market in March 2017.

Microsoft and Sony are both expected to release next-generation consoles next year, but new consoles could struggle against the launch of cloud-based gaming services such as Google Stadia.

Microsoft and Sony have announced they’ll work together on cloud gaming.

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