As we sit here toward the end of 2015, the gaming industry is now two full years into the new console cycle for the PS4 and Xbox One. Sales and adoption of the systems have risen at an unprecedented rate and many believe that pace to only continue in the future.
There is still so much potential yet to be tapped into within the PS4 and Xbox One, and developers are continuing to show new and interesting ways to leverage both pieces of hardware. Companies like EA believe there is a long way to go before we see this generation of gaming hit its peak.
The PS4 and Xbox One themselves continue to evolve as a result of Sony and Microsoft’s willingness to innovate within their respective systems. This will only help drive more and more interest in the consoles, and the Chief Financial Officer of EA Blake Jorgensen said he doesn’t expect the two consoles to peak anytime soon.
“There are new consoles out with more storage space and so you’ll see that as a way of driving additional console sales. I think you will see a lot more bundling over the next couple of years because it’s always been a popular way to drive consoles. We feel like there is plenty of growth to go in the cycle. We’re nowhere near the peak in the console cycle at all,” Jorgensen said at the USB Global Tech Conference.
Microsoft recently introduced their Backwards Compatibility feature for Xbox One, while Sony has done some interesting things with their PlayStation Now service. Games will also be a driving factor in these systems continuing to sell well over the coming months.
With exceptions always being found, gamers are supporting titles being released and it feels like more and more games are of a high-quality, which correlates considering the amount invested in a AAA game. Jorgensen went on to talk about the amount of software that is being sold so far during this generation compared to last-generation’s attach rate.
“For us the attach rate is about the same, which is okay because the extra content component of the software has gone up dramatically. For example, our Ultimate Team business is now $600 million on top of the core console business and comes in at a very nice margin. That allows us to expand the margin profile and sales profile without necessarily changing the tie-ratio with the software. That’s a huge value driver for us,” Jorgensen said.
Star Wars Battlefront dropped into retailers yesterday and it is now available for the PS4, Xbox One and PC. That was the last major release for EA in 2015, and there are only a few left across the industry.