Electronic Arts held its earnings conference call for investors and analysts yesterday, and Chief Operating Officer Peter Moore had quite a few comments to share about the performance of the PS4 and the Xbox One and especially their attach rate (the number of games purchased by customers per console sold).
Sony has done well with the PS4 when you compare it to the first two months of their launch of the PS3. They’re up to 2.1 versus 1.9 [attach rate]. Microsoft is a little down, the 2.6 attach [rate] of Xbox One vs Xbox 360, and this is United States only, during that similar period of launch. But I think a lot of that has to do with the bundling activity we saw on a global basis, but certainly here in the U.S. I think it’s been a solid start for both and we’re incredibly bullish that it will continue in Fiscal Year 2015.
It’s worth mentioning that despite the fact that Sony is improving its attach rate since the last generation while Microsoft’s worsened, the Xbox One still seems to have a better attach rate than the PS4.
Moore had previously predicted that the two next generation consoles would have sold ten million units combined by the end of the fiscal year, and not only he mentioned during the call that he’s standing by that prediction, but he feels than they’re going to do better than that.
I think it’s going to actually be in excess of that and I’m feeling pretty good about what I’m seeing and hearing when visiting retail and listening to retailers talk about their inventory flow.
Both Sony and Microsoft seems to be doing a pretty darn good job of flowing inventory in between now and from what I’ve seen, the end of our fiscal quarter on March 31. I think it’s 10 million plus.
Considering that Sony and Microsoft sold through 7.2 million consoles by the end of December, they have three months to sell over 2.8 million for Moore’s forecast to be accurate. I’d say that’s pretty much in the bag.
One thing is for sure: this has been a hell of a generation start. We could easily call it a rocket start. If things continue with this pace, we’re in for a great ride for the next few years.