It was difficult for both publishers and developers to estimate how many units the Xbox One and PlayStation 4 would push. We’ve continually heard analysts predict the end of the home console, but much to Activision’s surprise, the new pieces of hardware have sold over seven million units since launching last November. It’s a strong start, and Kristin Southey, senior vice president of investor relations, only sees positive things ahead.
“Not only [do] these devices deliver faster processing and better graphics, but these new consoles and continuing improvements to broadband infrastructure world-wide provide new and improved capabilities for online gaming,” she explained (via SeekingAlpha). “This includes same-day downloads, improved social features and new opportunities for emerging potentially higher margin business models like the sale of virtual items, downloadable content and other value-added online services that will provide a greater flexibility for our audience to access, consume and pay for content.
"The new consoles should be [a] catalyst for growth and margin expansion. And over the next two to three years as their install base grows, we expect to have greater opportunity to capitalize on a rapidly expanding audience, broader international penetration and more profitable business models."
The demand for last-generation software continues to drop, but Activision expects that to be offset by the increasing adoption of the newer, more powerful hardware.