Global game console shipments will hit a new high in 2023

Owing to constraints within the supply chain and the vagaries of macroeconomic uncertainty, Sony’s game console shipments witnessed a 4.7% decline in 2022. However, with the robust shipments of PlayStation 5 and the sustained momentum from legacy models, not only was growth restored, but the global game console shipments also experienced an uptick. According to the latest forecasts by TechInsights, 2023 will see a surge of 14% in global game console shipments, surpassing the mark of 46 million units.

Nintendo, which held a commanding 45% market share in 2021, saw a slight descent to 40% in 2022, yet continued to spearhead the industry. Venturing into 2023, it’s projected that Nintendo’s share will ebb to 28%, ceding the vanguard position to Sony. This trajectory is anticipated to pivot only with the launch of the new generation Nintendo Switch. It’s envisaged that Nintendo’s forthcoming device, likely to be unveiled in either March or April of the ensuing year, will rally its market share close to the 40% threshold.

Buoyed by the PlayStation 5, Sony captured a 38% market slice in 2022, narrowing the gap with Nintendo, and is forecasted to eclipse its competitor this year. Sony harbors ambitions of vending over 24 million game consoles in 2023, thereby cornering approximately 53% of the market domain. Though a wane in Sony’s game console shipments is predicted for the following year, numbers are still expected to surpass 20 million units, keeping Sony in a predominant position with a high probability.

Microsoft has perennially occupied the third berth in recent years, with shipments of its Xbox Series X/S consoles hovering around the 9 million mark, maintaining a market stake of 20%. Even in the absence of imminent plans for a new game console, Microsoft’s standing remains unshaken. This stability can be attributed to the burgeoning number of Xbox Game Pass subscribers, refined software and marketing strategies, and a resilient supply chain that not only retains its current gaming aficionados but also entices new users to its extant offerings.

On the revenue front, propelled by the robust sales of high-average selling price products (PlayStation 5, Xbox Series X, Nintendo Switch OLED), the global game console market’s yield is projected to witness a year-on-year augmentation of 22% in 2023.