The PlayStation 5 and Xbox series consoles are expected to boost record game spending in the US market this Christmas, but Switch is likely to come out on top.
This emerges from a new announcement published by Mat Piscatella of the NPD Group in which the US games analyst reiterated the belief widespread among industry experts that both next-generation consoles are likely to be out of the way when they are released next month all available inventory will be sold out.
Piscatella suggested that Nintendo could take advantage of the PS5 and Xbox series stock shortages and continue its strong sales in 2020.
“PlayStation 5 and Xbox series consoles should be some of the hottest holiday gift items in 2020. Units will be hard to find through 2021 if demand continues,”
“Switch will also be a hot holiday gift as more households pick up multiple Switch consoles in the fourth quarter. The lack of available inventory of new PlayStations and Xbox systems will leave Switch as an appealing available option (though the offering may still be hard to find). “
The note assumes US consumer spending on gaming will hit $ 13.4 billion for the combined November and December period, up 24 percent year over year.
During the vacation months, annual consumer spending for 2020 could soar to over $ 50 billion, Piscatella wrote, which would set a new record for the US market.
The NPD analyst expects Call of Duty to continue its 12-year career as the best-selling game franchise in the US market and is planning fewer price promotions than usual for the current generation of console hardware.
“The rise in hardware demand in the spring and summer months of 2020 has made inventories for PlayStation 4 and Xbox One consoles slim and left little incentive to promote prices,” explained Piscatella.
“While there may be some bundling of older hardware, especially around Black Friday, I don’t see price promotion as a major factor in the 2020 holiday market.”
The PlayStation 5 release date is November 12th in the US, Japan, Canada, Mexico, Australia and South Korea. The rest of the world will get the console a week later on November 19th.
Xbox Series X is priced at $ 499 / EUR 499 / £ 449 and Xbox Series S is priced at $ 300 / $ 300 / £ 249. Both consoles are scheduled to launch on November 10th.