Console Cycle LffecL

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As shown by Lhe charL above, console sales do noL Laper off every year afLer Lhe release year. ln Lhe case of Lhe
xbox 360, whlch launched laLe 2003, sales lncreased every year unLll 2012, ln anLlclpaLlon for Lhe nexL generaLlon of
consoles. A slmllar scenarlo occured wlLh Lhe S3, whlch had lnlLlally very weak sales and dld noL become proflLable
unLll 2010, almosL 4 years afLer lLs release. 8oLh consoles had lncreaslng sales unLll 2012, when lL can be assumed LhaL
Lhe markeL became saLuraLed. 1he Wll ls a baskeLcase due Lo Lhe popularlLy and hype caused by Lhe markeLlng of lLs
caLchy conLroller and lnlLlally lower prlce. Pandheld devlces ln general are ln decllne due Lo smarLphone gamlng.

osslble reasons for lncreases ln popularlLy afLer Lhe release of a console lnclude:
rlce drops, nlnLendo, Sony and MlcrosofL all decrease Lhelr prlce of Lhelr consoles over Llme. 1he S3, whlch
was $600 aL launch, ls now down Lo around 200.
Console Cycle LffecL
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newer models, S3 sllm, dlfferenL verslons of Lhe xbox360 (LllLe, Arcade, klnecL, eLc.) enLlce gamers Lo buy
Lhem
8ug flxes/updaLes: As Lhe flrmware lmproves and bugs ln Lhe sofLware/hardware (xbox 360's red rlng problem).
Also, Lhe addlLlonal servlces such as neLfllx and Pulu sLreamlng and an lmproved dlglLal markeLplace would lead
Lo more sales
opularlLy: As more people buy Lhe new consoles, Lhe more oLher people wlll buy Lhem
new Came releases: AL flrsL, Lhere are slgnlflcanLly more games avallable for Lhe prevlous generaLlon of
consoles (as ls Lo be expecLed). As developers geL more accusLomed Lo codlng and deslgnlng for newer consoles,
games become more opLlmlzed for Lhem. Whlle Lhey wlll usually release a verslon for Lhe prevlous generaLlon as
well as Lhe new one (l.e. Madden nlL 2009 was released for x8ox 360 and xbox, buL Lhe 360 verslon was far
superlor ln game play and such as rosLer updaLes and beLLer onllne play).
new games sLop belng released for Lhe prevlous generaLlon of consoles. Cames such as C1Alv, Call of uuLy 4,
uncharLed, Zelda, Marlo, and oLher franchlses wlLh a sLrong fan-base cause an lncrease ln new console sales
when Lhelr newesL game can only be played on Lhe new console.
1he lasL Lwo polnLs lead Lo Lhe concluslon LhaL game releases are [usL as much a drlver of console sales as console sales
are of game releases.


x8ox was released 11/03, S/Wll 11/06
0
2000
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10000
12000
2002 2003 2004 2003 2006 2007 2008 2009 2010 2011 2012
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LA Acuvlslon CameSLop
Console Cycle LffecL
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As shown by Lhe graphs, Lhe slgnlflcanL revenue lncreases for Lhe game companles dld noL happen ln Lhe release years
(laLe 2003 and 2006). lL Look beLween a year and a year and a half for sales Lo sLrongly be lmpacLed. 1he same Lrend
shows wlLh each companles' sLock prlces.
0
300
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2002 2003 2004 2003 2006 2007 2008 2009 2010 2011 2012
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LA Acuvlslon CameSLop
Console Cycle LffecL
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