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Industry

PlayStation and Activision game sales have slumped, and the culprit seems clear

The increase in the price of video games in the current generation, from $70 in the United States and €80 in Europe, seems to be taking its toll.

The price increase of video games that came with the current generation PlayStation 5 and Xbox X Series X|S is one of the most controversial decisions we have seen in the industry in the current generation. PlayStation, Activision, and Electronic Arts were some of the companies that raised the price of their games, something that according to analyst Derek Strickland has caused something that many users suspected: sales have fallen.

A clear example is the case of Call of Duty: Modern Warfare 2, a game that has generated a huge amount of revenue according to Activision’s financial reports ($1 billion in just 10 days). However, this figure is never reflected in the number of copies sold. In other words, the game generates a lot of revenue thanks to micropayments, season passes, and other elements, but not because it has managed to sell more copies to users.

In Sony’s case, despite record software sales ($6.367 billion in combined digital and physical software purchases), the total number of units sold was down from the fiscal year 2022, with 39 million fewer units sold than last year.

PS5 sales are scary

The case of hardware is the exact opposite, as PS5 is selling at a record pace and is already the best-selling console in a single quarter in history, with only 6.3 million consoles in this period. To give you an idea of the pace, the Nintendo Switch stood at 4.45 million consoles in the same slot in 2021 and 3.43 million in 2022, a machine that is a resounding success year after year and continues to sell.

Predictions for PS5 have just increased and it is difficult to know where its ceiling is, but with almost 40 million machines distributed in less than 3 years, everything points to the fact that it will look at the best sellers in history. A ranking which today the Nintendo Switch occupies the third position; in this link, you have the complete list.

Source | Derek Strickland