The PlayStation 5 and Xbox Scarlett are releasing next year and Turtle Beach expects that the consoles will experience higher than average growth rates.
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.”