the PS4 also falls in sales, many users are reserving for the future PS5
People don’t want a PS4 (that much) either. The same issue we discussed in the case of the Xbox One has been confirmed for the PS4, which sales have dropped significantly during the last quarter of last year.
The drop has not been as steep as the Xbox One: while it fell 43% in hardware sales, the PS4 has done it 25% with respect to the results of the same period of 2018. In Microsoft users are reserved for the Xbox Series X, and in Sony the same is happening and users are also being reserved for the PS5.
The Osborne effect strikes back
In 1981 the Osborne Computer Corporation announced the Osborne 1. In 1983 the founder of the company, Adam Osborne, announced not one, but several new generation models They were just prototypes at the time, but he said they would dramatically improve the Osborne 1’s performance. What happened?
That reservations and sales of the Osborne 1 were canceled and revenues plummeted. Such was the fall that the company itself had to announce bankruptcy a few months later, in September 1983. That announcement ended up condemning the company, and it became a paradigm with its own name: the Osborne effect.
The Osborne effect has been repeated numerous times throughout history. Sega started talking about the Dreamcast when the Saturn was trying to consolidate and condemned this model. Nokia fell into the same situation when it announced that it was moving from Symbian to Windows Mobile: it is true that they were no longer competitive with products based on iOS or Android, but they continued to generate significant revenue for the firm.
The Xbox One and the PS4 are also victims of their successors
As happened a few days ago with the fiscal results of the Xbox One, history has repeated – albeit with a little less impact – on the PS4. Sony sold 6.1 million units of its console compared to the 8.1 million it sold in the same period of 2018, something that represents a fall of 25%.
Annual sales figures have also dropped notably: 14.7 million units were sold in 2019, while 17.7 million were sold in all of 2018. The fall has accelerated, since during 2018 Sony also sold less than in 2016 and 2017, when it achieved 19.4 million units sold.
A total of 14.7 million PS4 units were shipped in 2019, down from 17.7 million in 2018.
Unless there is a price cut this year, it’s likely that sales will decline sharper in 2020. pic.twitter.com/bPYzlZ4qpK
– Daniel Ahmad (@ZhugeEX) February 4, 2020
As Niko Partners analyst Daniel Ahmad explained, “Unless there are price cuts this year, sales are likely to decline more sharply in 2020“Those sales that we have already seen on the Xbox One are also being seen on the PS4 with some frequency, but it seems clear that many users are already waiting for the future PS5.
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