Next-Gen Consoles Revive Video Game Hardware Sales

Almost exactly one year ago, on November 15, 2013, we entered the next generation of gaming as Sony released the PlayStation 4 in the United States. One week later, Microsoft followed suit and released its own next-generation console: the Xbox One. Both releases had been eagerly awaited not only by gamers but by the entire gaming industry. Caused in part by the lack of new hardware and partly by the newly arisen competition from mobile games, video game hardware and software sales had been declining for years prior to the new consoles' arrival.

A year later, it is safe to say that the new consoles did in fact cause a change of momentum and revived the ailing industry, at least in terms of hardware sales. New retail sales of video game hardware have increased significantly in every month since November and both the Xbox One and the PlayStation 4 have been selling much better than their predecessors did in their first year.

There is one caveat though: video game software sales, that is physical retail sales excluding downloads, haven't kept pace with hardware sales. Due to a limited selection of next-generation titles and a faster-than-expected decline of last-generation sales, video game software has continued its decline for most of the year. However, as the installed base of new consoles grows and more titles become available, it seems likely that software sales will also improve in the long run.