Are video game consoles set for a bumper Black Friday?
On the surface, it looks like it's been a banner year for video game console sales.
Overall in every major market, video game console sales are up. PS5 sales are up over 100% in some European countries, while Nintendo Switch sales are incredibly up year-on-year, despite it approaching its seventh anniversary.
But as is often the case, topline numbers hide some other concerning trends.
The global market growth on consoles is driven by PlayStation 5, which has grown exponentially over 2022. This is because PS5 was largely missing from store shelves due to severe stock shortages last year (although the US market appeared to fare better than others). PS5 is delivering record-breaking numbers right now, but that is partially due to pent up demand caused by a lack of availability in 2022.
The success of the Switch is impressive, but the growth is mostly localised in Japan and other export territories. In the US, Switch sales have dropped 21% this year, while sales have slipped 7% across Europe.
As for Xbox, it's been a tough year for Microsoft's platform as it's declined in sales during its third year on sale in most major markets.
"The entertainment sector should take heed of overall economic uncertainty"
According to GfK, in the UK PS5 had a 43% share of all console sales over the last 12 months (November 2022 to October 2023), but over the last six months (May 2023 to October 2023) that has risen to 51%.
"Recent PS5 highlights coming from unrestricted sales on the standard PS5 hardware model, aggressive price promotions in July and August, and the recent EA Sports FC 24 bundle," explains GfK games boss Dorian Bloch.
"Over the same measures the Xbox Series consoles have dropped from 26% market share over the last 12
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