People bought fewer consoles in June, according to a new report by the market research company NPD Group. Sales dropped by 17% compared to June of last year, marking the console market’s first drop since before the COVID-19 crisis began in March.
The decline should not come as much of a surprise, considering that the PlayStation 5 and Xbox Series X are only months away. The former recently enjoyed much media and fan attention following Sony’s PS5 Showcase, which may have contributed to the decline in sales for current generation consoles.
But sales were actually soaring for the previous three months, with the PlayStation 4 hitting a new milestone in units sold in March. That month saw a 63% increase over the previous March, and was up from a 34% drop in February sales. The trend continued into the spring, with April sales surging to an 162% increase and May seeing a 56% increase.
While sales are down compared to last June, year-to-date console sales actually increased by 25% compared to 2019, for a total of $1.6 billion, according to NPD analyst Mat Piscatella. And while PlayStation 4 and Xbox One sales have dropped, the Nintendo Switch continues to be in high demand, as it was once-again the top selling platform in unit and dollar sales. Fans had a hard time finding the console in March and April, as stores around the country sold out of the Switch.
Switch sales have soared since the release of Animal Crossing: New Horizons, as another NDP report revealed that it was one of top selling games of June. Unlike Sony and Microsoft, Nintendo does not have a new console releasing anytime soon, which likely further contributes to the ongoing high demand for the Switch.
The surge in the spring and drop in June likely has everything to do with the ongoing COVID-19 crisis. Sales were up in March and April because people were locked in at home with nothing to do but perhaps play a few matches of Call of Duty: Modern Warfare with friends or build their dream town in Animal Crossing. But as lockdown orders were lifted in late May and early June, people began to go back to work, causing demand to decline.
That is also coupled with the rising excitement for next-gen consoles, as fans are likely holding on to their cash in anticipation for the Xbox Series X and PS5. The release dates for the consoles have yet to be announced, but many speculate that the next-gen consoles will likely release in late November. So while sales are down for now, expect to see another surge in sales this fall, when both the PS5 and Xbox Series X hit store shelves.