Performance of the Three Major Brands

Sony PlayStation

Sales and Market Position

• By fiscal year 2024, total PS5 shipments reached 77.8 million units.
• Annual shipments in 2024 were 18.5 million, down from 20.8 million in 2023.
• Q4 shipments in 2024 were 2.8 million, a big drop from 4.5 million in Q4 2023.
• PlayStation brought in ¥4.67 trillion (about RMB 227.5 billion) in sales, up 9% year-over-year.
• Operating profit reached ¥414.8 billion (around RMB 20.2 billion).
• Total revenue for FY2024 hit $31.74 billion — a record high.

Software and Services

• Game sales for PS4 and PS5 grew from 286.4 million in 2023 to 303.3 million in 2024.
• First-party game sales dropped from 39.7 million to 28.9 million.
• Digital downloads made up 76% of total sales in 2024, up from 70% in 2023.
• Monthly active users (MAU) grew 5%, from 118 million to 124 million.

Key Strategies

• Keep innovating with PlayStation to stay ahead.
• Launching “PlayStation 5 Pro” in Nov 2024, featuring better ray tracing and AI-powered gaming.
• Focus on PlayStation Plus subscription and cloud gaming.
• Work closely with game developers.
• Hardware sales may decline in 2025, but expected to be offset by more first-party game sales.

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Microsoft Xbox

Sales and Market Position

• Microsoft hasn’t released exact Xbox Series X|S sales.
• Estimates say total sales reached around 28.3 million by mid-2024.
• FY2024 estimated shipments: 3–4 million units (about 1/5 of PS5’s).
• As of June 1, 2024, VGChartz reported 28.74 million Xbox Series units sold.
• Only 2.9 million units sold in the U.S. in 2024; just 290,000 units in Europe.

Software and Services

• Xbox Game Pass hit 30 million global users in 2024.
• Focus on Xbox ecosystem, cloud gaming, and cross-platform play.
• Acquired companies like Activision Blizzard to boost game content.

Key Strategies

• Expand Xbox Game Pass further.
• Strengthen cloud gaming and compatibility across platforms.
• Grow game library through acquisitions.
• Though hardware sales are behind Sony, Xbox focuses on building strong subscription services.

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Nintendo Switch

Sales and Market Position

• By end of FY2024, Switch had sold 152.12 million units worldwide.
• Q4 sales rose by 1.26 million units.
• FY2024 total sales dropped 12.6% from the previous year but still reached 15.7 million.
• In Q4: Standard model sold 260,000 units, Lite sold 220,000, OLED sold 780,000.

Software and Services

• Sold nearly 200 million games in FY2024.
• Physical game sales dropped 26%.
• Remains the leader in handheld gaming consoles.

Key Strategies

• Promote Switch’s portability and versatility.
• Stay competitive with regular updates and new game releases.
• Launching the next-gen console, Switch 2, in 2025 with a target of 15 million units sold in the first year.
• Expected total sales of Switch 2 to reach 80 million by 2028.

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Market Share and Competitive Landscape

Overall Structure

• Top 5 players (Sony, Microsoft, Nintendo, Valve, ASUS) held 60–65% of the market in 2024.
• Sony leads in the high-end console segment.
• Nintendo dominates in handheld and family-friendly markets.
• Microsoft has a strong presence in North America but trails globally.

2024 Sales Comparison

• PS5: 18.5 million units
• Switch: 15.7 million units
• Xbox Series X|S: 3–4 million units

Total Sales by End of 2024

• Switch: ~152 million units
• PS5: ~77.8 million units
• Xbox Series X|S: ~28.3–35.9 million units

Regional Highlights

• In the U.S., PS5 has 10 million more users than Xbox — the gap widened from 6 million in 2022.
• Xbox struggled in Europe with only 290,000 units sold in 2024.
• In Asia, Sony and Nintendo performed well; Microsoft had limited market share.

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New Players and Market Challengers

Valve

• Steam Deck gained popularity in the handheld PC gaming market.
• Leverages its huge Steam game library.
• Targets PC gamers wanting portable play.

ASUS

• Launched ROG Ally handheld gaming PC.
• Offers a high-performance, Windows-based portable gaming experience.
• Competes directly with Steam Deck.

Cloud Gaming Providers

• NVIDIA GeForce Now
• Amazon Luna
  These services challenge traditional consoles by offering games without needing powerful hardware.

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Trends and Future Outlook

Hardware Innovation

• Consoles keep improving with 4K/8K, high frame rates, ray tracing, etc.
• Handheld gaming is making a strong comeback — performance + portability is the new trend.
• Hybrid models (like Switch) are popular; more companies may follow.

Services and Content

• Subscription services are becoming the main source of income.
• Exclusive games drive hardware sales.
• Cross-platform play is growing, but exclusive titles remain key.

Business Model Shift

• Moving from one-time purchases to subscriptions.
• Digital downloads continue to grow; physical game sales are dropping.
• Cloud gaming challenges the need for traditional consoles.

Market Forecast

• Game console market is expected to keep growing, with 2025–2034 CAGR above 5%.
• Switch 2 is likely to launch successfully in 2025.
• Sony and Microsoft will focus more on service revenue than hardware.
• Handheld and hybrid consoles will be major growth drivers.

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Data Sources

• Sony and Nintendo FY2024 financial reports
• Global Market Insights
• VGChartz
• Aldora Intelligence
• Qianzhan Industry Research
• Ampere data