PS4 “dominant console” & to sell “another 12 million in 2014″, terabyte HDDs by end of year

PS4 console & menu

Analyst group Wedbush has published a report predicting great things for PS4, including 12 million further sales this year while becoming “the dominant console at the end of the this cycle”. [Throws to fanboys. Runs].

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PS4 “dominant console” & terabyte HDDs by end of year

The report describes the PS4 as “a phenomenal success right out of the gate”, citing the 4.2 million sales in just six weeks. It then predicts a further 12 million sales, mentioning the lower price point as the main reason. The overall thrust of the report is that cheapness gives Sony the edge, consoles will sell faster this generation and, with the falling costs of storage, you can expect terabyte HDD PS4′s by the end of the year.

The repost is long and full of graphs but here are the key points:

  • “After just 6 weeks on the market, the PS4 sold through an amazing 4.2 million units, and we expect the console to sell another 12 million in 2014.”
  • “The PS4 is significantly more powerful than the PS3, but its power is unlikely to be fully harnessed by game developers, as the PS3 was already capable of HD output at 60 frames per second. Instead, we think that the increased power is likely to be more advantageous for handling the many multimedia capabilities of the console, and we expect to see Sony launch its game streaming service, PlayStation Now, later this year.”
  • “The sell-through and production plans for the Xbox One and PS4 suggest that both will sell at a more rapid pace than their predecessors.”
  • “We expect market penetration for these new platforms to vastly exceed the rate of penetration by their predecessors.”
  • “We expect the dominant console at the end of the this cycle to be the PS4.”
  • “Our choice of the PS4 to win the next generation console race is purely a function of its price; at $399, we believe the PS4 presents a more compelling value proposition than the $499 Xbox One.”
  • “Our forecast calls for 294 million cumulative PS4 software units and 227 million cumulative Xbox One software units sold by the end of 2016″.
  • “As hard drive storage continues to come down in cost, we would not be surprised to see a terabyte of storage offered as standard fare by the end of next year.”
  • “Console games for the PS4 and Xbox One are expected to cost an average of $30 million to develop.”
  • “PS4 are much more powerful devices, but the incremental power will likely be used primarily to run games at 60 frames per second throughout at an output of 1080p”.

Source: Wedbush