Nothing Microsoft Can Do To Close Gap With PS4 – Pachter

Michael Pachter has said it’s impressive Microsoft is even able to hang in there.

Posted By | On 04th, Dec. 2015 Under News


While Michael Pachter has been talking about the upcoming Nintendo NX more than anything else, that doesn’t mean he doesn’t also have some opinions about Microsoft’s Xbox One and Sony’s PS4. On the latest round of his new podcast, Pachter talked about the gap in sales between the Xbox One and the Sony PS4. In short, while Microsoft has been doing things to try and get into a real fight during the console wars, the industry analyst believes the war has already been lost.

During the podcast, Pachter was asked what, at this point Microsoft could do in order to make up ground against the PS4. In response, he answered that there really isn’t anything the company could do. Microsoft is going to have to be happy finishing second and that the firm should just be glad it isn’t finishing behind Nintendo. Pachter pointed to the two companies’ sales numbers for their most popular consoles. For Sony, the PlayStation 2 sold more than 170 million units. Microsoft’s best selling console, the Xbox 360 is sitting at around 80 million units sold. “We should start every console cycle assuming Sony’s going to outsell Microsoft 2 to 1, because they have twice as many people who know what their console is and like.” Pachter said in his podcast.

The analyst also said that it’s rather remarkable Microsoft is able to hang steady the way it has been the last few months. Despite it being competitive in some regions, holding steady is about as good as Microsoft can hope to do. “My guess is Microsoft is gonna really try hard to win in the U.S. and they’re probably going to fail. They’re gonna hope to win globally and they’re pretty definitely gonna fail.”

Thanks, Twinfinite.

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  • GHz

    Except Michael Pachter knows that he is only talking half the truth, disregarding the fact that the gaming biz has shifted into services and that selling most hardware doesn’t = being the company that will earn more in gaming revenues. When will the miseducation of gamers end? Tencent is 1st, MSFT 2nd, Sony 3rd as far as who’s making money in gaming. This is fact. Nintendo isn’t even in the top 10. What is Michael Pachter talking about?

    • XbotMK1

      Revenue doesn’t mean profit you idiot. SMH

    • GHz

      OMG you’re such a panicky lil b!%ch captain obvious. Look @ you trying to play smart.

      1st I never said Revenue = profit. I’m pointing out that gaming is more than just hardware, and is more about services. These days Its more accurate to recognize the state of gaming as it is today to give a more accurate description of where these companies stand. Otherwise he’s misleading us. It’s true PS4 sells more hardware, but its false to say that MSFT will fail globally, because in the end, how much they earn is the ultimate deciding factor who comes out on top. With the wealth of gaming technologies and services MSFT provides besides selling hardware, they are clearly winning. That’s fact.

    • Mr Xrat

      You are aware that the same source has MS making more revenue first half of last year but Sony overtook it by December 31st, right?

      When will the miseducation end?

    • GHz

      Absolutely I knew. I mentioned it before because I’m not afraid of the truth, Unlike you & your fickle friends. Check my feed. I stay current. Point is Pachter reading into this like its still the 90’s and consider only one factor (hardware), which is only half of the truth these days. Sony is still the more recognizable brand. Top branding is tough to beat. But what does that chart tell you? It tells you that if a company like tencent can b #1, then you must look at what they did to do that. It’s not from selling hardware, so the next question is, ” how then?”

      When will the mis-education end? Well i just put you on to some real info & you instead try to use it against me. No point in that if you understand what that info is telling you. But hey, we’re talking about you here right. You’re not too bright.

    • Knowles2

      Console side of the gaming business haven’t shifted to be service only. That only really happen in the mobile and pc world. Pachter is only talk about the console business.

    • GHz

      “Console side of the gaming business haven’t shifted to be service only.”

      I didn’t say that. I’m saying talking hardware to imply that it is the only factor to determine who is more successful is false. Hardware is only half the story.

      “That only really happen in the mobile and pc world.”

      Don’t console gamers participate in micro-transactions? That’s just one example of a service that is game related.

      “Pachter is only talk about the console business.”

      Yes he is & having you believe that nothing else matters. Read his ending statements. It’s the kind of narrative console warriors love. I think Pachter knows what he’s doing , knowing he must compete for those clicks & have a certain audience tune in to his podcast. He’s not lying, but he’s not being completely honest either. The gaming business model has changed.

  • awng0781

    I hate to say this, but Pachter is right.
    Xbox One stumbled out the gate at E3 2013, with the disastrous DRM BS. Couple that with strong murmurings that PS4 was stronger than Xbox One, and it was the perfect way for Sony to regain lost marketshare from the PS3, which they did. Here in North America, the PS4’s lead over the Xbox One may not seem very pronounced, but in Europe and Asia, the PS4 has literally sold like 5 times better than the One. Unless Microsoft can convince European gamers to buy an Xbox over a PlayStation console, they should never expect to win another console “war” ever again, barring another instance where Sony utterly overprices their PlayStation console.

    • Alistein

      Point is MS is selling well maybe not as good as playstation but still well. Remember this is a business as long as they’re making money based on their projected target revenue they’re fine. Also sony is spending a fortune on third party games like COD, Destiny and Starwars and 2 of those games are doing better on a rival console that has no where near as much console sold. Also companies like MS and Sony only make a fraction from the game sales and the main profits come from here if their are any hardware loses it is recouped here. Finally because of the focus on third party there’s less money left to focus on first party, this was the case last gen when the opinion was xbox 360 had no games just the same old formula Gears , Halo , Forza and Fable. MS has already made a ton on Halo 5 and if their exclusives do equally or partially as well they will be in a really good spot.

    • awng0781

      COD, Destiny, and Star Wars have all sold better on PS4 than they have on Xbox One.

    • Alistein

      I didn’t include Starwars I know it did better on ps4 but Destiny sold more on X1 . I know this is old but vgcharts had it wrong at the time. Also I know the pre orders were way higher on X1 than ps4 and on Amazon the X1 is selling better, the npds are not out to confirm atleast in the United States. I just have never heard this games are selling better on ps4 on note though I know the assassin’s creed did better on ps4 and also sony says fallout 4 as sold better on their console.

    • awng0781

      NPD doesn’t take digital sales into account. PS4 bundles with a digital copy of Destiny were sold in 2014 and 2015 (with The Taken King, of course). PS4 bundles with a digital copy of Call of Duty Black Ops 3 were sold this year. It comes to no surprise that Black Ops 3 and Destiny are the two largest digital software sales launches ever on PSN.
      Also, NPD is just the U.S. In Europe, Asia, and Japan, PS4 versions of third party games often sell many, many times better than the Xbox One versions. Overall, PS4 third party software sales are much higher than Xbox One third party software sales.

    • Alistein

      We don’t have global numbers unless you want to try vgcharts which is not reliable. I know npd is American and as far as concerned the biggest gaming market in the world also most of the time articles are written on this games it’s usually from a western perspective. Starwars battle front basically has numbers from Europe and America for now being considered. I think shooters are just suited to the xbox platform and community and most xbox gamer buy games digital. Japan sells more consoles true but Western games like COD and Destiny hardly sell that much. I’ll concede to the ps4 bundles and since I don’t know the global sales numbers I’ll stick more to npd as a reflection or atleast as a good hint as I imagine these games sell the bulk like GTA in the west .The west is definitely the main factor and those 2 seem to have their dominance on X1 in light of Sony’s heavy marketing.

    • awng0781

      Search up the video game software sales charts of European countries such as Germany, France, Italy, Spain, etc… PS4 crushes Xbox One in those regions…

    • Tech junkie

      They sell better if you factor user base. Sony is spending all this money and still can’t get their users to buy games.

      More sales will always be a given if Sony accounts for 66% of consoles and only accounts for 60% of a games console sales even after throwing money at these 3rd parties that is not good in the eyes of shareholders, they wonder why they aren’t getting the game sales numbers.

      Sony should be selling a higher percentage of games per console given all it’s invested into 3rd party titles, I don’t believe it is.

      Given numbers are all of the place and there are no concrete numbers for game sales that include digital the only people that know are Sony and MS.
      If you use VGchartz quite a few games like Black Op 3 for example sell very well on Xbox, better on PS4 but not as good as it should be given install base 3rd party agreements etc.


      There are 30 million PS4s worldwide
      17 million Xbox One’sworld wide
      So obviously multiplatform games are gonna sell more on the PS4
      P.S Halo 5 Guardians sold almost the same amount as COD BO3 it’s first week of release

    • awng0781

      “P.S Halo 5 Guardians sold almost the same amount as COD BO3 it’s first week of release”

      That is a false statement.

      Black Ops 3 generated $550 million in sales in its first 3 days.
      Halo 5 generated $400 million in sales in its first 3 days, but that also includes revenue generated from any Halo 5 related hardware (Halo 5 Xbox One console, Halo 5 branded controllers, Halo 5 microtransactions, etc.)

  • Alistein

    Why even publish these, this guy has never been right on anything, we need better analysts and not just one especially one whose predictions are always so far off. True the ps4 is outselling the X1, that is as plain as day but to say to start every generation with the idea sales will be 2 to 1 in Sony’s favor shows this guy has no idea of how business works. MS clearly understands their strength as a software company and that’s where their focus is on it’s what was the main thing last generation with the introduction of entertainment services like Netflix. In anycase xbox is a business for MS and as of 2012 when the console had sold 67 million MS had generated 56 billion dollars in revenue while Sony at the start of this generation were pretty weak financially at their very first press event the ps4 was using weaker hardware and only had 1 gigabyte of memory compared to the standard 8 now used but thanks to fan interest and developers they were able to bump it up to current status.

  • Mr Xrat

    Talking the obvious, here.

    Xbone is finished.

  • HisDivineOrder

    I can’t believe I’m saying this, but…

    …Pachter is speaking with logic here. I can’t dispute most of what he’s saying in this specific case.

    I don’t think anyone should discount the very real possibility that the PS4’s absolute dominance over the Xbox One has at least something to do with the horrible user experience most people had with their 360’s (ie., RROD). One assumes that during the 360 generation, those users wouldn’t go elsewhere and have to rebuy their software/peripherals and lose their friends.

    But the very second a new generation came along, everyone remembered their RROD experiences, refurbished replacements, and repeated warranty replacements.

    And they said, “How about no, Microsoft?”

    Toss on the way Microsoft introduced the world to the Xbox One with its Price is Right reveal and “Crewmembers on a sub without internet access should just play a 360” tone deaf Mattrick PR campaign with a price that just looked way out of touch with their competition and an insistence on a Kinect peripheral that had played out years ago. And an unflattering initial take on changing up used games.

    Also, remember that PS3 wound up winning in units sold globally. Especially in countries not the UK and US.

    Take all that and bake a cake of understanding.

    Now take what Pachter said and just ice the cake I made with the icing of his logic.

    Someone needs to take some icing and write, “This is why Xbox can’t win.”


    Last-gen consoles the Wii outsold both the Xbox 360 and PS3 by 20 million units
    Did that mean the Xbox 360 and PS3 were unsuccessful
    Patchter needs a video game industry history lesson

  • Mark

    Pachter’s buggin talkin this 2:1, at the start of every cycle nonsense. The main reasons the PS4 had a huge lead since launch is because, in order of importance;

    1) It released at 100 bucks less than X1 for 8 months
    2) It was in 70+ countries since launch, whereas the X1 was in US, UK, and a few others
    3) Many people still thought the X1 wouldn’t allow for used games with friends (and some still do)
    4) PS4 consistently hits 1080p, not so for the Xbox

    So, this here, is why the PS4 has GAINED the advantage. It isn’t simply because “most people love the Sony brand” like Pach’s claiming, although Sony has a huge following no doubt. Still, next generation, Microsoft may be the ones with the more powerful system that hits a higher resolution. And, Sony may have a big blunder at their E3. Not likely tho, since they always go second lol. Anyway, Pach’s got an attrocious argument here.

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