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Opinion Business Hardware Turtle Beach: PlayStation 5 and Xbox Scarlett Expected to Have Higher Than Average Growth Rates.

IbizaPocholo

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ibiza

Turtle Beach recently published its financial results for Q3 2019 and during the company’s earnings call with investors, CEO Juergen Stark talked about the company’s forecast and how the console gaming market is evolving in the coming years.

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“PlayStation 5 is expected to have custom 3D audio designed to excel with headsets. Xbox is working on integrated cloud gaming to lower the barrier to entry for playing new games”, the CEO told investors. “Both are exciting developments on the new consoles that will of course also set a new bar for graphics and processing power.”

“Meanwhile, the older consoles will continue to constitute a strong installed base of headset buyers. Last quarter, PlayStation 4 hit the 100 million mark for cumulative units sold and Xbox One to hit about 50 million according to DFC. I believe this is the first time that new consoles had been announced ahead of the prior holiday season, so it'll be interesting to see how this impacts the market.”

Stark says that next year will be a transition year, but expects higher than average growth for the next-gen consoles and accessories for a year or two after the launch of the PlayStation 5 and Xbox Scarlett.

“If this new console cycle follows the pattern we'd expect, the first year or two after launch will show higher than average growth rates for consoles and for console accessories.”

The executive added that research firm DFC has forecasted that combined sales of the current- and next-gen consoles will set hardware sales records in the near future.

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“In fact, DFC has said that with the launch of the new systems, and continued sales of the current consoles, it forecasts that the combined hardware sales will set records in 2021 and 2022”, Stark said. “Our console product portfolio plans also reflect 2020 as an important transition year with a focus to have key new Xbox and PlayStation products launched next year ahead of the expected uptick in 2021, very exciting.”
 

Boswollocks

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I know this gets said every gen, but...

I expected slower than usual growth rates.

At some point, the casual/mobile crowd will stop buying new consoles.

Seems as twitch, mixer et al are major influencers in the sale of consoles and games, will they be damaging their own value stream by broadcasting to smaller audiences with a new gen console?

Wouldn't it make more sense to keep peddling pro and X console streams to a larger audience that can relate to those consoles, vs a small user base that has purchased, possibly the most expensive consoles ever launched?

At what point do graphics become good enough for casuals who enjoy playing on the cheap?

Even if the mass market adopts the new consoles I can see them seriously lagging for a year or two, by then a new fad may have come along (streaming?) Which would ruin the mass market for traditional consoles.

I really believe we could be seeing a Wii effect, where millions were captivated then millions moved on...
 

A.Romero

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I also think next gen will sell faster than previous gens.

The only thing that could fuck this up is streaming services but somehow I don't see it being picked up by the mainstream yet.

It's not only about the graphics, it's about the games as well. Some stuff will be cross gen but there will also be exclusives and just on account of the holidays sales will be good. Plus, BC will guarantee the availability of games which will be the norm for first time instead of an exception.
 
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bryo4321

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I also think next gen will sell faster than previous gens.
I don’t think this is what they are saying though, if you read the whole thing. They just project higher growth rates in the first couple years of these consoles since they are new. It’s a no brainer statement basically.
 
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A.Romero

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What?
This generation starting without BC was the exception.
Xbox 360 got emulation based BC I think a couple of years after launch. Meaning it was not a launch feature.

PS3 lost it's BC capabilities (PS2) a few years after launch too.

So there is a really short time frame where both Sony and Microsoft offered BC simultaneously and only one of them kept it.

At least in my opinion BC isn't the norm in the industry. At least not as it will be next gen.
 
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Boswollocks

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SONY and Microsoft dismissed Turtlebeach this generation by bundling the PS4 and Xbox One with headsets anyway.
Microsoft not giving TB the ability to Bluetooth to the controller this gen is a piss-take.

The 360 had a Bluetooth puck at the bottom of the pad and it was totally wireless. Yet, this gen, i'm dicking about with wires.
 

Quasicat

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“PlayStation 5 is expected to have custom 3D audio designed to excel with headsets. Xbox is working on integrated cloud gaming to lower the barrier to entry for playing new games”, the CEO told investors. “Both are exciting developments on the new consoles that will of course also set a new bar for graphics and processing power.”
This is the part that has me strangely excited. With the Xbox One X (and possibly the S) able to stream 4K, then a Game Pass service and XCloud would be the cheapest way to get into next gen. I usually jump in on one console at launch, but I could stretch it out for a couple of years if this happens.
 

Trimesh

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Xbox 360 got emulation based BC I think a couple of years after launch. Meaning it was not a launch feature.
It was a launch feature, but it relied on files stored on the HDD so if you got one of the SKUs that didn't include the drive (like the "360 core" units or the later "arcade" units), then the BC was not available unless you bought a hard drive.

It also didn't support a lot games, especially initially - but it was a feature that was present for the whole life of the system.
 

A.Romero

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It was a launch feature, but it relied on files stored on the HDD so if you got one of the SKUs that didn't include the drive (like the "360 core" units or the later "arcade" units), then the BC was not available unless you bought a hard drive.

It also didn't support a lot games, especially initially - but it was a feature that was present for the whole life of the system.
Do you remember what games were compatible at launch?
 

Panajev2001a

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I think some people have forgotten that the launch PS3s had backwards compatibility.
This really shows how much people really really cared for it at that time 😂.
The game changer for BC is digita libraries carry an expectation: users expect to carry them over and keep playing them if they so wish.
 

Trimesh

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Do you remember what games were compatible at launch?
Honestly, no - it was a long time ago. I can remember being surprised that Halo 2 worked, but the original Halo didn't (I think it was added later, though). Jet Set Radio Future worked, one of the Star Wars games worked - I think there were about 200 titles that were supported.
 
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A.Romero

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Honestly, no - it was a long time ago. I can remember being surprised that Halo 2 worked, but the original Halo didn't (I think it was added later, though). Jet Set Radio Future worked, one of the Star Wars games worked - I think there were about 200 titles that were supported.
I thought it was released later. Thanks for the info!
 

Trimesh

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I thought it was released later. Thanks for the info!
I suspect you were getting confused between the BC for disc based games (which was present from launch) and the service based on downloads (Xbox Originals, IIRC) that was implemented a few years after release.