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Talkingship – Video Games, Movies, Music & Laughs | May 21, 2019

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No, Sony Have Not Won the Console Wars

No, Sony Have Not Won the Console Wars

Today, Sony announced they sold 4.2 million PlayStation 4s worldwide in 2013. This is, inevitably, compared to the Xbox One, 3 million of which were sold in the same period (give or take a few days, based on release dates). Of course, everyone looks at these figures and thinks that Sony have clearly won the console wars. They’ve sold 1.2 million more consoles, after all! Game over!

Except…no. That’s a huge error in logic. Because what almost everyone is forgetting is the difference in price: the Xbox One costs $100 more. And basic economics tells us that when prices are higher, demand is lower. Obviously. So it would be ridiculous to expect the X1 to have sold as well as the PS4. These figures should surprise no one.

This decreased demand is made up for by the increased revenue, however. I’ve run the numbers, and calculated that Sony sold about $1.68 billion worth of consoles, whilst Microsoft sold about $1.50 billion. That’s assuming an average RRP of $399 and $499 respectively, which is obviously not correct (prices are higher in other territories). This is a different of $180 million: a not-insignificant difference, but hardly game-changing when we’re talking about billions. To put it into perspective, that difference is just 12% of Xbox One’s total revenue.

But that’s not all. Of course, Microsoft and Sony have different profit margins on their products. Microsoft make $28 per console, resulting in a rough profit estimate of $84 million. Meanwhile, Sony squeezes just $18 out of each PS4, leading to noticeably lower profits: just $75.6 million.

Now, I’d ask you to bear in mind that companies exist to make profits. That’s the end game: making lots of money. Not having loads of users. Not making the best games. Not having a marginally higher resolution and frame rate on Battlefield 7: Death Killing Edition. Making money. And what we see from these figures is that Microsoft are, at this point in time, making more money from Xbox One sales than Sony are from PS4 sales. Almost $10 million more. And I think those numbers do a much better job of showing the real winner of the console wars than some sales stats.

  • XBox Done

    what you are forgetting is that if the PS4 was still available everywhere, then those numbers would be much higher. So stop being an Xbox fan boy and admit Sony is winning the console wars and will win it in the end.

  • Kate Briga

    Buthurt is strong in this one,..
    Sony will wipe the floor with xbox one,.. and that is a fact
    PlayStation domination.

  • Kate Briga

    His point is Luxemburg is not US ,.. Like you cannot compare the countries like that,.. one has a population of half a million people

  • Dion Abbott

    It’s not rocket science wow, go to school.

  • fareor .

    Your article is invalid. MS and Sony don’t make money from every console sold, they sell at loss
    They make money of games, subscriptions and accesoiries.

  • https://www.youtube.com/ButtonBros TheRedButterfly

    And then there’s the consideration that the Xbox One is selling in less than 1/3rd as many markets, but still managing to keep up. Per market, Xbox One has sold around 230.8 thousand consoles, where PS4 has around sold 79.2 consoles per market… On a level playing-field, that’s Xbox One doing almost 3x as well as the PS4.

  • https://www.youtube.com/ButtonBros TheRedButterfly

    Okay, I’m as big an Xbox fan as the next guy, but you really ought to work on your photoshop skills.

  • Kate Briga

    yes,.. because Luxemburg=US

  • https://www.youtube.com/ButtonBros TheRedButterfly

    Yes, because that’s the only result to be gathered from this simple calculation.

  • https://www.youtube.com/ButtonBros TheRedButterfly

    Normally they sell at a loss. But this generation? They’re both selling at a profit.

  • Kate Briga

    The difference will only get wider ,.. they cannot even compete in their home market

  • https://www.youtube.com/ButtonBros TheRedButterfly

    Mehdi has already explained that the Xbox One became the fastest-selling console in North America during its launch month. Ignoring this reality doesn’t make your point correct, it makes you ignorant.

  • dlocsta

    You seem to forget Sony pays Microsoft for every Blu Ray player AND movie they produce. Sony pays royalties on the DirectX technology used in Blu Ray to you-know-who.

  • James Bauer

    You’re kidding yourself if you think they will “dominate.” From a sales perspective, they may win, but sales really only matter to businessmen, and we’re not businessmen, we’re gamers.

    This entire discussion is premature. Its only 2 months into the launch – “winners” and “losers” shouldn’t be getting talked about at least till a year after launch

  • fareor .

    No they’re not sony already stated they are selling at a loss.
    It may cost less than the retail price to make, but then there is still the retailers cut on the consoles. Add that to the price and consoles are sold at a loss.

  • Dion Abbott

    LMAO NO, those territories are
    very small, MS already launched where MS gets 90% of
    sales……………….You think Venezuela sells the same amount as the
    US and UK??? You are clueless obviously.

    If sony just launched in 13 that stock just goes to those countries and sells out………………….

    Clueless.

  • HalfBlackCanadian

    How Clueless? You attacked literally one of my points, and not even well.
    I never said sales of 1million are found in the extra territories, I said it definitely helped Sony to be the sole provider of new hardware over the holidays in those markets. If you don’t think so then you don’t know how economy works.
    There’s no way that you know the extra stock in the same 13 territories would mean guaranteed sales. That said, I did mention Sony also had the upper-hand with MUCH better PR (see: 80% of the internet on the matter) and that the people susceptible to that are the initial drive (those people being hardcore gamers (whatever that means) internet savvy parents and the younger demographic that eat up with gaming blogs put down).
    Sony had the better launch, for sure. Again, my point is with less market availability and all the backlash, Microsoft did well in even getting to 3mil. Sony will lead the way almost assuredly for the next few years, after that who knows.

  • Kate Briga

    Hey Microsoft, at least you still have Brazil. 😉 If Sony does not find a way to build PS4’s there, because of import taxes.

  • http://bu3ouf91.tumblr.com/ Vincent

    Talkingship which is my first time I heard about this website is an xbox fan.

  • Dion Abbott

    Ps4 1 million 24 hours..x1 900k 3 weeks, LMAO at listening to Ms pr spin on numbers. X1 is selling way slower even in the US.

  • Dion Abbott

    LMAo at this stupidity….You do not sell near the same amount in Saudi Arabia as US..Ms is already in it’s biggest markets where 90% of it’s sales generate from..those other small territories are so small they make no difference, Sony would just sell out regardless of the # of countriesl. Xbox fans sure are stupid.

  • Dion Abbott

    And what miracle will make MS do well in europe and Japan? Sony is taking Ms only 2 markets it sold well in now, and will dominate everywhere else. MS issue has always been they are a 1 territory console, now they might not have any..PS3 outsold 360 in europe by a mile despite being 16 months later and mroe expensive. Ms has zero chance to be even close with the World widr brand playstation.

  • Dion Abbott

    LMAo as it world economies are all created equal….your post is pure pants on head retarded.

  • https://www.youtube.com/ButtonBros TheRedButterfly

    You’re spinning the numbers however you want. And you’re not who I was talking to, so, kindly, sod off.

  • James Bauer

    And you figured all this out within 2 months of the consoles launching?… Seeing how the next-gen lifecycles are likely going to last 5+ yrs. I find your enthusiasm and certainty a bit premature.

  • Dion Abbott

    After that sony will keep dominating, Playstation sells globally, MS sells only in the US, and even the US Sony is winning. Ms as no shot.

  • Dion Abbott

    How is stating fact spinning???? 1 million 24 hours is faster then 900k in 3 weeks clown…Ms are the ones in desperate spin mode. That fastest selling was pure Ms desperation. PS4 is still outselling x1 in US with supply constrained.

  • Dion Abbott

    I repeat, what mircacle will happen to turn japan and europe in favour of x1?? Heck ps3 launched 1 5 years late and was mroe expensive and still mopped the floor there with 360.

  • Guest

    LOL!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!111

    HOLY FUCK YOUR DELUSIONAL IGNORANT FANBOY SPINNING IS SOLID GOLD HILARITY.

    8.3 MILLION TO 4.5 MILLION AND GROWING

    SIT AND SPIN ON THAT! LOL!!!!!!!!11

  • Guest

    LOL!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!111

    HOLY FUCK YOUR DELUSIONAL IGNORANT FANBOY SPINNING IS SOLID GOLD HILARITY.

    8.3 MILLION TO 4.5 MILLION AND GROWING

    SIT AND SPIN ON THAT! LOL!!!!!!!!11

  • Guest

    LOL!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!111

    HOLY FUCK YOUR DELUSIONAL IGNORANT FANBOY SPINNING IS SOLID GOLD HILARITY.

    8.3 MILLION TO 4.5 MILLION AND GROWING

    SIT AND SPIN ON THAT! LOL!!!!!!!!11

  • Guest

    LOL!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!111

    HOLY FUCK YOUR DELUSIONAL IGNORANT FANBOY SPINNING IS SOLID GOLD HILARITY.

    8.3 MILLION TO 4.5 MILLION AND GROWING

    SIT AND SPIN ON THAT! LOL!!!!!!!!11,

  • Guest

    LOL!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!111

    HOLY FUCK YOUR DELUSIONAL IGNORANT FANBOY SPINNING IS SOLID GOLD HILARITY.

    8.3 MILLION TO 4.5 MILLION AND GROWING

    SIT AND SPIN ON THAT! LOL!!!!!!!!11..

  • Guest

    LOL!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!111

    HOLY FUCK YOUR DELUSIONAL IGNORANT FANBOY SPINNING IS SOLID GOLD HILARITY.

    8.3 MILLION TO 4.5 MILLION AND GROWING

    SIT AND SPIN ON THAT! LOL!!!!!!!!11

  • Guest

    LOL!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!111

    HOLY FUCK YOUR DELUSIONAL IGNORANT FANBOY SPINNING IS SOLID GOLD HILARITY.

    8.3 MILLION TO 4.5 MILLION AND GROWING

    SIT AND SPIN ON THAT! LOL!!!!!!!!11.

  • http://www.xboxonedaily.com/ TheRedButterfly

    Wow, how far back in my Disqus history did you have to scroll to find this comment?

    I’m flattered that you care that much, but you really are wasting your efforts – I don’t do long-distance relationships, much less with men.