NPD data shows the long 'tail' of this generation

NPD data released by Microsoft illustrates the momentum of the current generation of consoles. Who needs a new Xbox when its having its best year ever?

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NPD data (pictured above) released by Microsoft showcases the momentum of this generation of consoles versus previous ones. While the data was specifically released to highlight the growing success of the Xbox platform, it also highlights how much life is left in this generation of consoles.

As the graph illustrates, the previous two generations generally peaked by the fourth year, with sharp declines in sales afterwards. Even Sony's ten-year PS2 peaked in year 3. Based on the direction of the graph, both the Xbox 360 and PS3 have yet to peak in their sixth and fifth year, respectively. The Xbox 360, in particular, spiked sharply recently, likely reinvigorated by vigorous sales of the Kinect sensor. Microsoft PR unabashedly points out that the system is currently the "top selling console" in 2011, with a 29 percent year over year growth, "the largest growth of any console on the market."

While Xbox 360 and PS3 have yet to peak, the Wii has experienced sales not unlike the PS2's. It has been an undeniable success for Nintendo, but its downward momentum makes it obvious why Nintendo is announcing a new console well before its competitors: it needs to, as it hasn't followed the same extended "tail" that both Sony and Microsoft have offered.

"Xbox used to be solely in the games business, but the business is on a different trajectory now," Microsoft's press release adds. "What was launched as the ultimate gaming machine has quickly evolved to become an all-in-one entertainment device with something for every member of the household." That is a message that you'll be hearing much more frequently at E3, and for the rest of the year.

Andrew Yoon was previously a games journalist creating content at Shacknews.

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From The Chatty
  • reply
    June 3, 2011 6:30 PM

    Andrew Yoon posted a new article, NPD data shows the long 'tail' of this generation.

    NPD data released by Microsoft illustrates the momentum of the current generation of consoles. Who needs a new Xbox when its having its best year ever?

    • reply
      June 3, 2011 6:49 PM

      I like the graph, but it really could use some indicators on the various lines that show when successor consoles were released. Wish they would use quarterly or monthly stats too instead of yearly.

      The shape of a lot of the previous era's consoles are likely to be correlated to that more strongly then just time. The Wii certainly looks to be post peak though.

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      June 3, 2011 8:21 PM

      They seem to be missing one thing

      The GAME BOY COLOR

      I mean PC. heh.

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      June 3, 2011 10:09 PM

      360 = no Bluray = no sale. I stream some shows over Netflix, but for new releases I want the crystal clear audio and visual fidelity of Bluray. I'm a purist I guess.

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        June 3, 2011 10:22 PM

        [deleted]

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        June 3, 2011 10:31 PM

        lol

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          June 3, 2011 10:32 PM

          [deleted]

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            June 3, 2011 10:38 PM

            Halen is not a purist, I guess.

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          June 4, 2011 1:51 AM

          You know he might own a high end projector or giant expensive TV, rips might not cut it on that.

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            June 4, 2011 5:04 AM

            [deleted]

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              June 4, 2011 5:06 AM

              Again, it depends on your equipment. If you're going to proper high end enthusiast like 10k worth of kit, he might be right.
              He's probably not though.

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                June 4, 2011 5:10 AM

                [deleted]

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                June 6, 2011 4:55 AM

                I've not yet met a single self-proclaimed (they're always self-proclaimed mind you) "audiophile purist" who had equipment that would make this kind of difference. The loudest mouths about this are a special kind of idiot indeed.

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          June 4, 2011 5:11 AM

          i only copy 1080p rips of my favorite shows to my ipod to watch

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        June 3, 2011 11:37 PM

        Oh come on, I don't even own a 360 (I own the other two consoles) and I know for a fact that a great majority of cross platform games are better visually on the 360.

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        June 4, 2011 1:34 AM

        I don't give a damn about BluRay. Having the best specs on paper doesn't mean shit to me any more. 1080p and high bit rate audio (5.1, 7.1 or whatever the fuck its up to now) only matter for event pieces like Avatar. For everything else, DVD quality streaming is good enough. Selection is better and the convenience trumps a physical library that you have to build and maintain. Besides, the gaming capabilities of a system are far more important.

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        June 4, 2011 1:54 AM

        Bluray is pretty much dead already now that so many people either stream or have a PC dedicated to serving up 720p and 1080p digital content.

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          June 4, 2011 2:51 PM

          Bluray (or any other physical media) will be dead the day *everybody* will have solid 20mbps+ bandwith. That day is far away.

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        June 4, 2011 6:19 PM

        LOL

        I have a 62 inch 1080P set, and I don't have Blue Ray, nor have I any interest in it. Movies and music are things that I stream through services. They do not warrant me purchasing them. I just watched "The Book of Eli" decent movie, I liked it, but I don't buy music or movies any more.

        Xbox360 - I own two of them, both fully functional, no red ring of death (but then again, I have air conditioning too in my house). We use the Xbox for the media functionality with Play On and Netflix more than gaming, though I do own about 60+ xbox games (and over 90 of the original).

        I haven't felt the need to buy a blue ray player of any sort. And none of the 6 PC's I'm running in my house have Blue Ray- whats the point- it's not like games require them.

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      June 3, 2011 10:40 PM

      Someone needs to correct the "year 5" to "year 6" segment of XBox 360 to offset those who bought new only for Kinect. It's like the Wii Fit factor, where some people buy it for the one motion gimmick, and then don't buy any games because they "don't play video games", and then let it gather dust.

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      June 3, 2011 11:46 PM

      I wonder if it's more the long tail, or the slower adoption. The market for the current consoles should be larger than the older ones, but the current consoles are just in the middle of the pack there. If the sales were more front-loaded they'd look just like some of the more successful older consoles.

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      June 3, 2011 11:50 PM

      "Xbox used to be solely in the games business, but the business is on a different trajectory now," Microsoft's press release adds. "What was launched as the ultimate gaming machine has quickly evolved to become an all-in-one entertainment device with something for every member of the household."

      reminds me a little too much of "the PS3 is not a games system":

      "Speaking about the PS3, we never said we will release a game console... It is radically different from the previous PlayStation. It is clearly a computer [...] If a new technology gets into mainstream PCs, the PS3 will have to adopt it as well. Maybe the Blu-ray drive will become writable. Well, maybe not at this point."

      And we know how well that strategy worked out for them...

      Damnit guys, just build an awesome gaming machine for a reasonable price and people will buy it!

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        June 3, 2011 11:57 PM

        [deleted]

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          June 4, 2011 12:06 AM

          Same here.

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            June 4, 2011 12:14 AM

            I can see how it would be useful for some, I did it for a short while and I think it's still very clumsy when compared to say, an Apple TV or any device running XBMC.

            For example there were at least 3 different hubs to access video from, the Video Marketplace, the Media > Videos tab, and the Media Center extender functionality... all in completely different areas with different UIs etc. Perhaps they can bring it all together and make it more cohesive in the next release, but so far I haven't found much to be impressed with, and certainly not enough for Microsoft to claim they are "at the center of my entertainment experience" or whatever.

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              June 4, 2011 12:37 AM

              It's certainly not as great as a dedicated box, but it's awesome to only need one machine to do everything with.

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        June 4, 2011 12:38 AM

        Sony can fuck off claiming their device is an entertainment system if they insist on restricting the content you can view on it.

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      June 6, 2011 5:21 AM

      Maybe I'm bad at reading marketing charts - but how can you claim to have the largest growth for the 360 if its being dwarfed by sales numbers from the Wii ?

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        June 7, 2011 9:45 PM

        Look at the past two years. You'll see the 360 is the only one with a graph pointing upward.

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