Proactive Investors - Black Friday 2023 in the video game space differed from previous years as there was ample inventory of high-end consoles from Microsoft Corporation (NASDAQ:MSFT) andSony Group Corp (NYSE:SONY), according to analysts at Wedbush.
They also pointed to greater variety, with more bundle options for the current generation of consoles than they have seen since before the 2020 refresh, and an underwhelming software slate that lacked a clear leader.
The analysts wrote in a note to clients that the X Box Series X most in-demand piece of hardware over Black Friday, which they attributed to $50 in savings at a sale price of $499.99 and $120 in savings when including Diablo IV.
“Microsoft was the clear winner on a combination of availability, discounting and Diablo IV,” they wrote.
The PlayStation 5 bundles had the standard starting price of $499.99 and included either Marvel’s Spider-Man 2 or Call of Duty: Modern Warfare III as free pack-ins, with the latter game’s poor reviews likely contributing to softer sales for the bundle, they wrote.
“Nintendo appeared to have a quieter Black Friday than we had expected, despite branching out beyond its customary Mario Kart 8 Deluxe Bundle, which could conceivably compel the company to revisit hardware pricing at some point,” they wrote.
The analysts added that it was a relatively quiet year on the software front, with most of the attention on hardware availability and deals.
“The overall release slate for Microsoft and Sony was somewhat underwhelming, with no new blockbusters accompanying the latest Call of Duty, apart from perhaps Sony’s Marvel's Spider-Man 2,” they wrote.
“As usual, the frontline sports games from EA (football and soccer) and Take-Two (NASDAQ:TTWO) (basketball) appeared to perform well at their customary discounted levels.”
Looking at the broader consumer electronic sector’s Black Friday performance, the analyst wrote that their channel checks indicate that inventory levels rebounded this year after low levels last year but sell-through only improved marginally.
They noted that the sales of smart TVs were notably softer than in 2022, while PC peripherals improved, gaming peripherals improved marginally, and GoPro’s strategy shift boosted retail sales.