During the financial conference call for investors and analysts that just ended a little while ago, Activision Chief Financial Officer Dennis Durkin gave his insight on the performance of PS4 and Xbox One, and on the recently announced holiday price cut for Microsoft’s new console.
Clearly we have two very very strong platforms that have gotten out of the blocks significantly faster than last generation. Both are very committed to winning. And obviously I think the last price cut that Microsoft just announced last week in terms of the fifty dollars heading into the holidays is going to be a nice tailwind to make that transition happen faster.
We’re very excited about the attach rates that we’ve seen, it’s been solid. You know, the flipside of that is that the tail of the current gen systems I think has been equally aggressive in terms of decline, but that is a little bit of a headwind that we face relative to that transition.
It’s worth mentioning that Durkin obviously means PS3 and Xbox 360 as “current generation.” He also mentioned that the new platforms are driving digital sales solidly:
Next Gen Systems, due to their high connection rates, improved transaction capabilities, and early adopter profiles have a higher propensity for digital purchases than previous generation systems, so overall we expect this part of the business to grow rapidly as the next gen installed base continues to grow and consumer buying patterns continue to embrace the convenience of this distribution model.
Personally, I have to admit that I’ve been betraying my beloved disks more and more since when I got a PS4 and an Xbox One, in favor of digital releases, so I can definitely see the trend myself.