Video Game Console Hardware Sales Are Way Down in One Region

Summary

• Major European gaming console sales slumped in 2024, attributed to market saturation and a dearth of new releases.
• The PlayStation 5 Pro, the only significant new console release from major manufacturers, failed to stem the overall sales decline.
• While total European gaming sales saw a modest 1% increase in 2024, this growth was driven by a surge in digital sales, offsetting a sharp drop in physical game sales.

2024 proved a challenging year for video game console sales across significant parts of Europe, impacting major players like Nintendo Switch, Xbox, and PlayStation. The region experienced a notable downturn in new console sales, although the overall gaming market wasn't entirely bleak.

The only new console launched in 2024 by a major manufacturer was the PlayStation 5 Pro, a performance upgrade of an existing console. Despite anticipation surrounding this enhanced Sony offering, it couldn't prevent a decline in overall European console sales compared to previous years.

A Video Games Chronicle report revealed a significant 21% year-on-year drop in European console sales for the PS5, Xbox Series X/S, and Nintendo Switch. While PlayStation, potentially boosted by the PS5 Pro, performed relatively best, its sales still decreased by 20%. The Nintendo Switch saw a 15% decline, and the Xbox Series X/S experienced a dramatic 48% drop. This downturn is largely attributed to market stagnation, with the original PS5 and Xbox Series consoles launching in 2020 and the Nintendo Switch in 2017. Further highlighting this trend, the Meta Quest 3S outsold all major gaming consoles on Amazon US in 2024, suggesting widespread console market saturation.

Video Game Sales Shift and Growth Slowdown

Overall European gaming sales in 2024 reached 188.1 million units (PC and console), representing a meager 1% increase compared to 2023. While positive, this growth likely fell short of industry expectations. The data reveals a significant shift in consumer purchasing habits, with digital game sales surging 15% to 131.6 million units, while physical sales plummeted 22% to 56.5 million units.

Expectations for 2025 are more optimistic, particularly with the anticipated launch of the Nintendo Switch 2, projected to significantly boost sales. It's crucial to note that the reported console sales figures exclude several major European markets, including the UK, Germany, the Netherlands, and Austria. Inclusion of these markets could potentially alter the overall 2024 performance narrative.

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