Console Wars and The Implications for Gamers
This article looks at the battle of the games consoles, as the Xbox and PlayStation continue to dominate the video gaming industry. It also considers depreciating value of consoles, and asks whether it offers enough for the gamers who are so addicted to the medium.
The battle of the games consoles has been raging across the globe in recent weeks, as the PlayStation 4 and the Xbox One have gone head to head in the quest to become the leading eight generation gaming platform. Given the financial stakes involved and global scale of the sector, it is little wonder that the race for console market dominance has achieved such intense media speculation and interest from gamers.
This also raises an additional question, however, as the monetary amount that gamers are forced to commit in pursuit of their passion continues to rise year-on-year. With this in mind, it is worth considering the true implications of gaming and obtaining new consoles as they are released/
The Facts and Figures: Consoles and the World’s Third Largest Gaming Industry
The Canadian gaming industry is particularly lucrative, and currently stands as the third largest in the world. Worth $1.7 billion, it relies on an avid gaming population and the fact that consoles exist in more than 61% of households nationwide. In addition to this, nearly 17% of gamers obtain an average of 15 new titles every year, meaning that people are willing to invest freely without any prospect of ever achieving a return. The Sony PlayStation 4 and the Xbox One are therefore competing for a huge target audience, especially in Canada and the U.S..
Perhaps a more interesting feature of gaming is the depreciating value of consoles over a prolonged period of time. A recent RateSupermarket.ca study finds video game systems depreciate an average of $311.95 CAD from their initial launch data, meaning that gamers benefit considerably if they are willing to bide their time and use their existing console for longer. The issue with this is that organisations such as Sony and Microsoft often time the release of their consoles to coincide with the introduction of highly anticipated titles, meaning that gamers are often enticed into making an emotive decision.
The Last Word for Gamers and Video Game Enthusiasts
The release of the PlayStation 4 and Xbox One represents the introduction of the eighth generation of games consoles, although neither of these options deliver great value for gamers. In fact, the less popular Nintendo Wii U console offers far greater merit for Canadian gamers, with a launch price of $249.99 and long-term resale value of $89.99. The initial outlay for this console is nearly half of the PlayStation, while the resale value is only $110 less on average. Despite the fact that this console offers the best bang for gamer’s bucks, however, it has not been able to compete with the efforts of Sony and Microsoft.
As the battle of eighth generation of games consoles continues to rage, the video gaming industry appears to be more robust than ever. Gamers must be wary of the rising cost of consoles, however, and the fact that individual video game systems will continue to depreciate in terms of value.
