The peak holiday selling season has arrived, with Black Friday coming in just two days. The holiday season should be centered mainly on the console launches as Sony and Microsoft ship more units into the channel and as consumers try to locate units.
Sony Corporation (ADR) (NYSE:SNE) launched PlayStation 4 into the North American market on Nov.15 and will debut the console into Europe and Latin America on Friday Nov. 29. Microsoft Corp. (NASDAQ:MSFT) also launched the Xbox One on Nov.22.
Both PlayStation 4 and Xbox One have sold more than 1 million units in their first 24 hours of availability. That said, Sony achieved this in North America alone while Microsoft hit this target after launching in 13 different markets.
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While a large number of consumers flocking to the major retailers in search of limited supplies of the new PS4 and Xbox One consoles, the vast majority of volume should remain centered around the biggest games (and biggest deals) of the year on the PS3 and Xbox 360.
Retailers have significant promotions in place to help drive traffic for the holidays – especially around hardware bundles and key software titles for the legacy console systems. Consoles tend to perform well on Black Friday. Last year, Microsoft sold 750,000 Xbox 360 consoles on the shopping holiday.
For the PS4 and Xbox One, demand is expected to outstrip supply throughout the holiday season, according to BMO Capital Markets analyst Edward Williams. As for the PS3 and Xbox 360, Williams believes that discounted software and bundles will drive demand as consumers focus on recent hit titles that include Call of Duty: Ghosts, Battlefield 4, Grand Theft Auto V, Assassin's Creed IV: Black Flag, and Super Mario 3D World.
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In particular, the new PS4 and Xbox One to continue to sell out heading into next year witho! ut any discounts, while Microsoft and Sony look to expand their installed base of Xbox 360s and PS3s, respectively, with various discounted bundles and software markdowns.
Key promotions for PS3 and Xbox 360 include:
Amazon.com, Inc. (NASDAQ:AMZN):
PlayStation 3 250GB console with The Last of Us and Batman Arkham Origins for $199 (regularly $369).
Xbox 360 250GB console with Halo 4 and Tomb Raider for $190 (regularly $249).
Best Buy Co., Inc. (NYSE:BBY):
PlayStation 3 250GB console with The Last of Us and Batman Arkham Origins for $200 (regularly $370)
Xbox 360 250GB console with Tomb Raider, Batman Arkham City, Halo 4, and Darksiders 2 for $190 (regularly $400).
Wal-Mart Stores, Inc. (NYSE:WMT):
PlayStation 3 250GB console with The Last of Us and Batman Arkham Origins for $199 (regularly $369).
PlayStation 3 12GB console for $149 (regularly $199).
Xbox 360 4GB console for $99 (regularly $179).
Target Corporation (NYSE:TGT) :
PlayStation 3 250GB console with The Last of Us and Batman Arkham Origins for $200 (regularly $370).
Xbox 360 4GB Kinect Bundle with Kinect Sports Season 2 and Kinect Adventures for $190 (regularly $300).
3DS XL for $150 (regularly $200)
GameStop Corp. (NYSE:GME):
PlayStation 3 250GB console with The Last of Us and Batman Arkham Origins for $200 (regularly $370).
Xbox 360 250GB console with Halo 4 and Tomb Raider for $200 (regularly $370).
PS Vita 3G/Wi-Fi Bundle for $180 (regularly $200).
The recent top charts at Amazon, Best Buy, GameStop, Target, and Walmart last week were littered with some major recent releases, including Call of Duty: Ghosts, Battlefield 4, Assassin's Creed IV: Black Flag, The Legend of Zelda: A Link Between Worlds, Super Mario 3D World, and several launch titles for the Xbox One – including Forza Motorsports 5, Dead Rising 3, and Ryse: Son of Rome.
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