Financial service company IHS Markit has released a report which highlights just how good a 2017 Nintendo had.
According to the study, gamers spent more on consoles, software and services last year than at any time since 2011. Nintendo's share of the games market jumped from 9 percent to 22 percent, thanks to the success of Switch.
$41 billion was spent on hardware, games content and services during 2017, an 18 percent rise year-on-year. The launch of Switch - combined with the arrival of the PS4 Pro and Xbox One X - meant that hardware spend was up 33 percent. "Content" spending hit $23.6 billion, thereby representing the largest segment of the games market.
Sony remains the dominant force in the market, but while Nintendo is on the rise, Microsoft has seen its share drop to 25 percent, down from 31 percent in the previous year.
[source cnbc.com]
Comments 44
Yay, Nintendo !
Microsoft, prrrrt....! 😜
I give it 5mins before we hear "where is the AAA third party support"
It's the default response any time Nintendo are reported to be doing well
Microsoft's loss is Nintendo's gain. There's studies and reports for everything like this one yesterday.
STUDY FINDS THAT NINTENDO GAMERS ARE LEAST WILLING TO PURCHASE DLC AND ADDITIONAL CONTENT
https://www.nintendolife.com/forums/nintendo-switch/what_do_you_think_the_nx_is_poll?start=26800#reply-26807
The report was for the UK and Nintendo tend not to do well there.
________________ __ ______________ __ ____________________________________
Anyway, back to this report, I suggest people read it because the NL article leaves out a lot of interesting information. Like, they say that Nintendo's market share will surpass Microsoft in 2018.
Games Console Market Share in 2017:
Nintendo - 22%
Microsoft - 25%
Sony - Market leader, doesn't give a figure in the report, I'll try find it elsewhere. Edit: It's 53%, which makes sense but wanted to be sure.
And this worrying bit.
The increasing importance of subscriptions to gaming, and users downloading titles rather than purchasing physical copies, shows the shifting sands in the industry.
"We are now approaching a tipping point in consumer behavior, where the digital share of full game sales has started to accelerate away from the transitional norms," Piers Harding-Rolls, head of games research at IHS, said in the report.
"This accelerating picture and the rapid shift to games-as-a-service monetization models is fueling growth in content spending."
Though in NintendoLand, digital sales lag far behind the competition. Thank God. I dread the day gaming is digital only.
Check out this article below as well for more information and graphs about the IHS Report.
https://technology.ihs.com/600640/games-console-market-2017
Microsoft is a fading light in the dark. Soon they'll be swept away by the new order....also their severe lack of console exclusives and good first party games isn't helping either. This is from an Xbox, Xbox 360, Xbox One, and multiple PC owner, lol. I feel like they really shouldn't make another console at this rate....at least unless something changes my next console purchase will be a PS5.
Another win for the Switch!
@Alikan Microsoft do have a couple of games coming out in Sea of Thieves and State of Decay, and I guess Crackdown 3 though I am not sure that's going to be anything decent with all the delays and lack of gameplay footage. I don't really know if there's much Microsoft can do to come back now. Sony and Nintendo are just outdoing them.
What makes Microsoft faded away is simple.
Microsoft NEVER Understand Japanese market.
Japanese gamers like something Kawaii / Cute or Anime style , but Xbox games Lack of those charm. No wonder Japanese gamers treat Xbox like a Strange machine. They might be wondering "Where is Kawaii / Anime looking games ?"
@SLIGEACH_EIRE I'm one of those people who aren't buying the dlc, just kinda forget tbh. Still haven't gotten Zelda, Mario Rabbids, or Xenoblade dlc even though I love all three games.
@Anti-Matter - Your statement is correct - Microsoft has never seemed to gain traction in the Japanese market. However, that's not the only factor. The original Xbox began to do very well at the end of it's life cycle, and the Xbox 360 was a huge success. I think it mainly just boils down to a lack of games and compelling exclusives when compared to other platforms.
@SLIGEACH_EIRE I think there are two things going on here. 1. Nintendo skews younger. 2. Nintendo hasn't really pushed DLC too much.
Most top selling Switch games (and almost all 3DS games) are without paid DLC.
@SLIGEACH_EIRE for PS5 and Xbox Next I predict a complete lack of physical media. Mainly because discs on their system are just used as download keys which allow you to wait a few hours of downloading and waiting. I prefer Nintendo cartridges that either work immediately or download their necessary update info in five mins to digital download keys.
That's right Nintendo, you gotta grab the market right by the percentage!
MS need to concentrate more on Western Europe. Anyway MS is not gonna leave the console business and that's a great thing.
@SLIGEACH_EIRE The insistence of "everything physical, I want to resell it later" seems to be what drives Nintendo gamers away from DLCs. I have no problem with DLC, I've got a lot of them for my Steam games and I've got the Zelda one too (though I'm not sure if I got my money's worth... Aside from an excuse to play more Zelda).
As for games-as-a-service: that one seems to be more of an artificial construct than actual user preference. AAA publishers adopt Free-To-Play business model without actually making their games free as they are not content with making just some money from launch and DLCs – they want to make infinite money from lootboxes, subscriptions and all of that awful nonsense. This system made millions for League of Legends or World of Tanks, but it makes people retch when applied to Battlefront. And the prevalence of Bethesda, which offers mainly single player games with no microtransactions (aside from those idiotic paid mods) or the success of Stardew Valley or recent Kingdom Come proves AAA publishers false... But they are too short-sighted and too narrowed to focus-group testing as usual.
The longer this does not affect Nintendo as it does "big platforms" the better. Last time I bought an "AAA" game was The Witcher 3 that was attached to the graphics card when I was upgrading my rig.
"Games-as-a-service", more like a huge disservice!
@kobashi100 we're playing bingo for the post-direct article tonight, you should join us.
@gortsi
Can i see the Bingo board ?
Switch and ps4 still suck compared to Xbox when it comes to power, pro consumer features and its amazing backwards compatibility. Nintendo charging more for ports than what they were when they released while I can play my 360 games in 4k for free. Crazy.
@brutalpanda This. Everybody's being as negative about Microsoft as they can, but they are by far the most pro-consumer of the bunch right now.
I own the PlayStation 4, Nintendo Switch and Xbox One, but it's the last I'm using the most right now. The PS4 is mostly for Sony exclusives and the Switch for its Nintendo titles and portable-preferred games.
The XB1 though? Its combination of Xbox, Xbox 360 and Xbox One games, its EA Access Vault and the Xbox Game Pass make it my console of choice right now. Being able to play through three generations, continue certain titles on my PC and actually own the Xbox 360 games that I get with my Gold subscription, is why I love that thing so much.
It's just such a shame that when Sony tried its best during the last few years of the previous generation, gamers responded to it. Everybody wanted in on PlayStation Plus and the availability of older titles through backwards compatibility/the PS Store. Microsoft is now doing something similar and gamers just don't seem to care. :/
@Anti-Matter look at @WiltonRoots profile under his comments. It's there
@Akropolon I think gamers do care but Xbox has had a bumpy road since launch. I couldn't imagine what kind of desert it would be if it still had the same features as it did during launch. Its my go to as well and I also love the streaming to PC, it works like a charm if you have both hooked up via ethernet. I've jumped off the Nintendo bandwagon and onto Xboxs since after I beat Odyssey. I guess there is something about the underdog that I like.
@SmaggTheSmug not all "games as a service" titles are super predatory and there are some benefits to a game constantly being worked on. One example for me personally is The Division. Game came out 3 years ago and is much Much different /better than when it launched because they used that model. Every time they have a major update I pop it back in and play for a few weeks then move on to something else. I see that as a positive. I agree some go too far but not all are bad imo.
@brutalpanda Yeah, it was similar to the PS3 in that regard, but I just don't see it catching up to the PS4 at all anymore. I mean, Sony's sold over twice as much as Microsoft has in the last four years.
Then again, it's still a way healthier industry than it was during the PS2/NGC/XB days... What was it, 120 million PlayStation 2's vs 20-25 for both the Xbox and Gamecube?
@brutalpanda yeah with the Kinect and always online mess at launch the Xbone really shot itself in the foot. If they hadn't had those stumbles out of the gate and done what they've been doing recently this gen would be much different. Alas hindsight is always 20/20
@Akropolon
"The XB1 though? Its combination of Xbox, Xbox 360 and Xbox One games, "
But Xbox One CAN'T play these games :
Old Xbox
1. Dance Dance Revolution Ultramix 1, 2 , 3 & 4
Xbox 360
1. Dance Dance Revolution Universe 1, 2 & 3
2. Dance Evolution (with Kinect)
3. The Sims 3 Pets
Those are the ONLY xbox games i have interest about.
Xbox One doesn t have
1. World of Final Fantasy
2. Kingdom Hearts 1.5 + 2.5 HD
3. FF X/X-2 HD
4. FF XII The Zodiac Age
I got those 4 SquareEnix games on PS4.
What a shame !
@Akropolon yeah, I don't even think that's their goal anymore. They are persistent on making sure the box is the best out of all this gen by the end of it. Their strategies are something that will benefit them in the next cycle where they will come in with full backwards compatibility and being able to continue/stream to PC and have the game pass at launch.
@redd214 failures are a blessing in disguise. Xbox has become an evolution of what it was when it first released the brand. The only thing that's missing are more games but they are investing into them now. It'll be a different ballgame in 3 years.
@brutalpanda we will see. I love what they're doing but still just not enough games on Xbox that I'm interested in that I can't get elsewhere. Forza and Halo are about it but I am certainly happy they are doing well now.
@brutalpanda Agreed. They're more and more moving towards the Xbox brand as a service, with it being available on PC's, perhaps phones/tablets at one point and the Xbox console.
Almost kind of like something like iTunes, with the service being available on a multitude of devices, but the "best" experience being offered by Apple itself on Apple TV.
Xbox has their strengths. Powerful platform, with great pro-customer services. Easy to use, affordable games and subscriptions.
They don't have the best line-up, but the incoming Sea of Thieves could be a game-changer about online co-op games. Other titles like State of Decay 2, Deep Rock Galactic or The Last Night, look very attractive.
I hope the best for Xbox, and I want they have a blast of E3.
@Anti-Matter So the Xbox doesn't offer some games you're interested in. That's not surprising, I have the same thing. I play different games on my XB1 than I do on my Switch than I do on my PS4 than I do on my PC.
That doesn't diminish the fact though that, as opposed to Sony and Nintendo, with the Xbox One you have access to multiple generations without having to pay for either an HD remaster, a streaming service or even an expensive barebones port.
It'll never have all of the original Xbox and 360 games, also due to licenses and whatnot, but it still shows Microsoft is working on it and it's still way more than the competition is offering at this point.
This is just stats for America, in Japan Microsoft only has 0.5% of the market share.
That’s awesome for Nintendo. Glad they have bounced back from the Wii U. There are some companies I feel good about giving my money to and Nintendo is one of them.
That's cool for Nintendo. As for Microsoft, I find it difficult to see anything stable for them in the games industry. They have an identity crisis going on in the Xbox division since the launch of One; And haven't found a solid footing since despite the One X.
The Switch is my favorite gaming device.
@Equinox
Yeah, I agree. That seems to be where they're dedicated to go. I think after their console the Xbox division will end up being a service imo. All these years since the og Xbox Microsoft has been trying to take out Sony which will never happen.
I feel so bad for MS, but I can't figure out what their game plan is aside from they were trying to get MS in every household (be it windows or their gaming platform). Right now, they have a small batch of exclusives and no real push to expand beyond what they already have in place. Which means if their exclusives don't appeal (or you game on PC) no point to having both the 4 and the One. Right now their marketing push is they are the most powerful...so? What can I play on it? My one has been a paper weight for about two years now. Which is a turn around from the 360 being my dominant non Nintendo console. The one good thing is MS is pushing more on the PC front (not a lot but more than they did before) which is good for me as a PC gamer. I do suppose with all the BC push the system is a good all in one if you offloaded your other systems...I'm not in that boat however so I'm not sure what to do.
I realize that the brand is bleeding money, and without the endorsement from Bill Gates it sorta started a slow spiral into identity crisis but if you have the money invested why not try to pull a viable product from it?
In. North. America.
It's worth mentioning.
@Ryu_Niiyama
Xbox is a Party Crasher for Duel between Nintendo vs. Sony.
Whether win or lose, it doesn't matter for Microsoft.
@RainbowGazelle Thanks. Didn't see that in the article anywhere.
This article is to the surprise of no one, but it's still interesting to see these figures.
I'm predominantly a Nintendo gamer, but I do play the occasional indie effort on PC. I'd get a PS4 if I had the time for another console, but an Xbox? There aren't enough exclusives or incentives for me to grab one.
@RainbowGazelle
Nintendo's market share is even bigger worldwide (largely due to Xbox's weakness in Europe and irrelevance in Japan).
@SLIGEACH_EIRE I'm not surprised Nintendo gamers are least likely to buy DLC. We expect full games
Jokes aside I s'pose Ninty's games are such games that don't need DLC to hype over. Be it any game (although some exceptions are there). As for third parties on Nintendo platforms, it's kinda messed up. Many people buy Nintendo consoles for Nintendo games and not third party (not everyone) so I think thanks to Nintendo themselves not releasing DLC for games that we've become accustomed to additions being done in the form of updates or "Free DLC" as the media likes to call it nowadays. Just a theory. Not exactly sure what the reason possibly could be about third parties but I'm definitely sure about my first point.
This must be for home consoles only as the 3ds is the best selling console this gen
30%? How can Microsoft have a 30% share of gaming? If this is US that makes sense, but then it's almost irrelevant.
And if MS is down to a 20% share, including the massive revenue from Xbox Live... They are in a lot of trouble.
when will people realise that Microsoft owns Windows? And that they make more money on a copy of Windows sold than they could ever make selling a console? The Xbox consoles are really just a hobby for them.
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