Smartphones and tablets taking the game away from Playstation, Xbox

 

The duel for survival, scoring goals in an international soccer match, chasing goons or racing cars may still pump adrenaline for kids and young adults, but are played more on smartphones and tablets than gaming consoles.

 

As a result, sales of gaming consoles such as PlayStation, Xbox and Wii has come down by up to 30% in the first six months (Jan-June) of this year as compared to last year, which electronic retailers and console makers Sony and Microsoft attribute to the flooding of large-screen smartphones, tablets and postponement of purchase for new models.

 

The console makers and retailers say this is the first time that sales of consoles has taken a hit, forcing them to re-look at their strategy to bring back growth.

 

"There is a deferment of purchase of gaming consoles with consumers either upgrading their smartphones for large screen or buying a tablet which fulfills their instant gaming urge," says Sony Computer Entertainment country head Atindriya Bose, who says the handheld console PlayStation Portable (PSP) and the flagship PS3 consoles are hit badly.

 

Sony, which claims to control 85% of the Indian gaming console market by volume, report sales growth of PS3 and PSP has come down to 30% and 20% respectively from some 45% in the last two years. The growth of the older console PS2 has become flat this year after reporting more than 20% growth in last two years, with Sony now planning to discontinue sales of this model in India by October. 

 

There is a screen size war taking place in the Indian smartphone market with ​global brands such as Samsung, Nokia and BlackBerry along with domestic ones like Micromax, Spice and Karbonn launching models in the 4-inch plus display size at prices starting from 6,000. There is also a sudden spurt in the entry-to-mid segment tablets which are sold anywhere between 5,000 and 20,000.

 

Videocon group's mobile-gaming-entertainment retail format Planet M Retail CEO Sanjay Karwa says monthly sales of gaming consoles and games has come down from 2 crore to 1.2 crore at its outlets. "This is in stark contrast to the 200% jump in tablet sales and more than 100% growth in large screen smartphones," he says.

 

Microsoft Corp India business group lead (interactive Entertainment business) Anshu Mor says consumers are delaying purchase of consoles in past six months more due to anticipation of launch of next-generation devices and prices going up marginally due to fall of rupee against the dollar. Both Sony and Microsoft are expected to launch their new models, PS4 and Xbox One, later this year. Year-on-year sales growth of Microsoft's Xbox consoles in India has comes down to around 8% as compared to 27% earlier.