Xbox One sells better than PS4 in Latin America in 2014

BraZIL

Latin America is now the second fastest growing gaming region in the world just behind Asia Pacific but ahead of North America and Western Europe. This year we expect revenue generated by home console software sales to exceed $1.2 billion and account for around 30% of total revenue generated by video games software in the region. Console hardware revenues are expected to exceed $3 billion this year across Sony, Microsoft and Nintendo.

Looking back to 2014 we can see that Latin America was the third largest market for console hardware revenues with total sales amounting to $2.8 billion, just behind North America and Western Europe who saw revenues of $5.1 billion and $4.7 billion respectively. In Latin America the Xbox One was the best selling next generation console in 2014 through official sales channels.

LATAM1

As noted in my last report, Sony generated approximately $8 billion in sales from gaming hardware worldwide in 2014 and we believe that Latin America accounted for approximately 16% of that total. Microsoft generated approximately $5.3 billion in gaming hardware revenue and saw a larger 20% share from Latin America. Latin America remains a big market for Microsoft and is where they have done well traditionally with the Xbox 360 last generation.

In Latin America there are three key gaming markets, Mexico, Brazil and Argentina. Mexico is by far the leading market for official console hardware and software sales thanks to much laxer laws on taxation of gaming products compared to Brazil and Argentina. Mexico entered the North American trade agreement in 2003 which allowed imports of console hardware and software with little to no import duties allowing for the price of entry for official consoles to be lowered. Microsoft started to target this market very strongly and with the price advantage over the PS3 led to Mexico becoming one of the top 5 markets for Xbox and allowed the 360 to have a huge lead over the PS3.

Destination-Brazil-Dash-FINAL-52914

In Brazil and Argentina there are still taxes in place on the sale of gaming goods in the country. Microsoft started production of the Xbox 360 inside Brazil in an attempt to reduce the price of the console by 40% and drive adoption of Xbox products in the country. This move has allowed Microsoft to not only gain a significant price advantage over Sony but allowed the Xbox 360 to take 85% market share last gen. At launch the PS4 cost approximately $1,800 in Brazil compared to the locally manufactured $1,000 Xbox One. It’s no wonder that Sony have started manufacturing consoles in Brazil this year.

The infographic below is one that many have seen before and helps demonstrate why the PlayStation 4 is so much more expensive than the Xbox One in Brazil (and Argentina). This month has seen the PS4’s price drop in the country but it is still more expensive than the Xbox One.

ps4brazilprice

In 2014 it’s estimated that around 600,000 Xbox One’s and PlayStation 4’s were sold through to end users in Mexico, Brazil and Argentina with around 75% of those sales attributed to the Xbox One. The overwhelming majority of sales came from Mexico where pricing for the consoles is lower and much more affordable, this is reflected in the chart below which shows total revenue generated by each market. In Brazil the Xbox One also sold the most consoles whilst in Argentina the PS4 took the lead in 2014. This is because the Xbox One did not officially launch in the country until December 3rd 2014 and therefore only had one month of sales compared to the 12 months the PS4 had.

It is very important to note that this chart only covers official sales in the countries/regions mentioned and does not account for grey imports. The grey market in Latin America is very large and sales from other regions may actually see a final sale in one of the above regions. That’s why the number of PS4’s sold in Brazil may actually be much higher when taking the grey market into account and the number of Xbox Ones may be much higher in Argentina as well.

LATAM2

There is growing demand for games consoles in Latin America and the Xbox One is expected to extend its lead through official sales channels off the back of the previous success that was the Xbox 360 and due to the pricing advantage the console has. Latin America represents a great opportunity for Microsoft and it means that Sony will need to aggressively market the PS4 in Mexico to have any hope of regaining the market there whilst also focusing on reducing the price further in Brazil now that they are manufacturing consoles in the country.

Microsoft have done well to target this emerging market and have come out on top as the leader in Latin America.. However they still have a long way to go in developed markets such as Western Europe and the USA and emerging markets such as the Middle East and Asia where the PlayStation 4 still leads. The PlayStation 4 remains the cumulative sales leader worldwide and has sold in 25.3 million units worldwide as of June 30th 2015, almost double that of the Xbox One.

*Authors note – The grey market plays an integral part in Brazil and Argentina. As this article only talks about official sales it is good to keep in mind that sales via the grey market will account for a healthy percentage of sales in these countries. Data is in this article is sourced from NPD, GfK, Newzoo, Euromonitor as well as estimates and analysis from myself. 
  • Speed12345

    PS4 is way cheaper now in Brazil, costing 2699 BRL (Brazilian Real), but still cost more than Xbox One with Kinect (2399 BRL). Now, PS4 and Xbox One pay the same taxes, so,there are no excuses for Sony now.

    Brazilians prefer the PS4, because they enjoyed all Sony consoles, have all popular games in Brazil (GTA, Fifa, Pes) and its more powerful than XONE. With this price cut, I believe Sony will start to catch Microsoft soon.

    Nintendo is dead weight in this country, also.

  • kristijanEX

    Croatia vs Brazil on the dashboard ? Yeah I remember that match, it was pretty awful how the referee let Brazil win so unfairly.

  • Larie

    The article say that sony get 16% of sales from 8 billion out of South America and MS 20% from 5.3.

    Which means Sony got 128.000.00 and MS 106.000.00. But how MS sold more with these numbers?

    • ZhugeEX

      Those numbers include sales of PS4, PS3 and PS Vita for Sony and Xbox One, Xbox 360 for Microsoft.

      Also more revenue doesn’t always mean more sales when ASP’s are different for different prices.

      • Larie

        Still it don’t make sense if X1 sold 4 times more than the ps4 (said in article). This article seems pure bullshit to me, can’t find any other info or article about this on the net lol

        • ZhugeEX

          The retail price of Xbox One, in Brazil for example, was considerably cheaper at the time which means MS were generating less revenue from each sale. Also as noted there were more Sony products on sale.

          If you don’t want to believe it then that’s fine 🙂

        • Lacerz

          The author conveniently forgets that the PS4 was launched in Mexico for $200 less than the Xbox One. That’s why he focused solely on Brazil when comparing prices. The PS4 hasn’t sold well in Brazil. That’s why Sony announced at E3 2015 that they would start manufacturing PS4s in Brazil to lower costs.

          Sony’s 1.28 billion in sales were mainly from Mexico where it had to sell even more to make up for selling for $200 less.

          It’s a poorly fact checked “article.”

      • Lacerz

        The Xbox One launched in Argentina for between $1,050-1,290 USD, depending on the bundle.

        The PS4 launched in Argentina for $1,100 USD.

        The Xbox One launched in Brazil for around $1,000 USD.

        The PS4 launched in Brazil for around $1,8000 USD.

        The Xbox One launched in Mexico for around $656 USD.

        The PS4 launched in Mexico for around $451 USD.

        At E3 2015, Sony’s head of Playstation in Brazil made this statement:
        “Over the past two years, we hear what Brazilians called for gamers. They wanted a fair price for the console. And with that, we announced the domestic manufacturing.”

        Takeaway? The Playstation isn’t selling in Brazil. Why else invest in infrastructure to bring down pricing? If your product is selling, you don’t care. If it isn’t, you do.

        So what does that mean? It means that the Playstation brand has made 1.28 billion in Latin America WITHOUT Brazil contributing to those sales figures, while the Xbox brand has only made 1.06 billion in Latin America WITH Brazil included.

        Sony is DOMINATING!

  • Grahf

    This is smoke and mirrors, no real proof is given.

    Clickbait garbage.

    • Lacerz

      A quick glance takeaway…the author’s ZhugeEX Chart shows a bar for Mexico that has the Xbox One with roughly 3/4 of the Mexican market (this is an estimate since numbers were conveniently omitted). Yet the Xbox One launched for $200 more than the PS4.

      Now the author concedes that the majority of sales used for this “report” were generated in Mexico, and according to that previously mentioned chart, the X1 has 3/4 of the Mexican market. Yet somehow, despite each X1 costing $200 more, the Xbox brand sold $200 million less than Playstation?

      The math doesn’t add up.

  • Roy90

    Although i agree that the market is growing fast, i doubt that Xbone is the best selling machine in Latin America, Xbone was released later in Argentina (september 2014) and other countries.

    It would be interesting if we get official data about this.

  • Luis Contreras

    Just read this ZhugeEX twitter page this guy is a huge xbone fanboy no wonder he made this up….for some reason i cant find any other website talking about this…it must be fake.

    • ZhugeEX

      You should read more. I’ve never owned any Xbox device ever.

      Maybe have a look at the other articles I’ve posted, the majority of which are PlayStation centric.

      • Guest

        I have genuine questions about the article you just posted. I know that you have been going around forums and replying to people, but the way I see it you don’t reply to people with relevant question about your article. So are you going to reply to my posts?

        Hope you’ll find the time to reply my other posts here. I’m actually curious…

        • ZhugeEX

          Sure, What do you want to know?

          • Guest

            As expected you decided to ignore actual questions about the incoherence with the numbers in your article.You have done it in the various forums and here you do it again ignoring my post in this comment section.

            I would love to believe you but the problem is that on the internet just about any random guy can come out and make tall claims without anything to back them up.

            1) None of NPD, GfK, Newzoo, Euromonitor deal with the latin american market.
            2) Mexico, Argentina and Brazil is not the Latin America.
            3) I would like to believe you when you say your not looking to make the buzz but your headline says otherwise. There is a HUGE difference between “Xbox One sells better than PS4 in Latin America in 2014” and “Xbox One may have sold better than PS4 in Latin America in 2014”
            4) Your very first chart is preposterous. Trying to say that latin america and its “600k” next gen console is more than 2.5 times the whole of Asia (Japan included) and is less than half that of “western Europe” or NA. The numbers just don’t add up when we consider the gaming revenues by Japan, US/Canada, UK/Germany/France compared to Mexcio (apparently the new superpower in gaming).
            ofc you don’t want to talk about this because I think you yourself can’t justify it.

            In one of your post you said something like “Why did I bother posting the article”?
            I think you know the reason why. And posting a provocating opinion and trying to pass it as a fact, for me, shows that you were looking for reactions.

            Maybe next time you won’t try to look for attention and think twice before presenting an idea or an opinion.

      • Tim Dog

        now you are a xbox fanboy lol these guys are morons man. you are a numbers and graphs fanboy, you could give a shit less .. you care about facts/numbers/graphs … this console war someetimes makes me laugh

        • Stonecold

          Sony fanboys always spin anything in their favor.

    • super6646

      This guy if anything is a PS fanboy. I’ve talked to him a few times on neogaf before (vgchartz screwed me over, still pissed at that). Anyway, he is a true blood Playstation fanboy, there is no doubt in my mind about that. He is more open minded than a lot of PS fanboys, but its in plain sight if you know this guy…

  • Guest

    “In Latin America the Xbox One was the best selling next generation console in 2014 through official sales channels.”
    What channels? Do you have actual source or are you just making some strange Pachter type analyse?

    I’ve read the entire article and see no actual proof or proper source. Are you trying to make the buzz and get people to your site by making a statement without any proof?

    • Luis Contreras

      Those charts tho must be true lol

      • Guest

        I’ve seen the guy going on various forums and making posts about this but he never replies to the people who are asking relevant questions. Why can’t he just give links to the source and how he came up with that statement?

        He first comes up with revenue generated per company. Then he talks of estimated share of the total revenue by the latin American market. Then he started giving some explainations with no actual figures. Next he starts talking of the price difference and manufacture cost in Brazil (even though he later shows that it’s quite infignificant compared to Mexico)

        He says that The latin american market generated more than 2.5 times the amount generated by the asian market. Yet later he estimates that the combined total of PS4 and XB1 is around 600K. In Japan alone the PS4 sold way more than 600k. It’s around 900K.

        He goes on to talk of a pricing advantage for XB1 but that doesn’t seem to be the case in Mexico.

        I think he is all over the place and until he can provide proper links or proof, this cannot be taken seriously. It is just another estimation by a random guy…

    • Francisco

      I live in Mexico and I can confirm that the Xbox One sells way better than the Ps4 here. Almost every person I know that owns a console has an Xbox, very few owns a Ps4 or Ps3.

      • Austin Jarmusch

        Then Mexico must be an even more awful place to live than I imagined….

        • Stonecold

          Better than your mommy’s basement.

          • Austin Jarmusch

            I doubt it, she has a PS4.

          • Stonecold

            A true pauper.

          • Austin Jarmusch

            PS4 is outselling Xbox One every where. It’s hard to imagine that it’s being outsold in Latin America. It’s an inferior system just let it go. Facts are facts.

          • Stonecold

            I never said it isn’t. BOTH consoles are INFERIOR. Glorious PC gamer. #dealwithit

          • Kamille

            it depends how you define “inferior” since 3rd party’s treat PC like a second class citizen.

        • Francisco

          Oh, you must be one of those ignorant pieces of shit.

      • Guest

        Sorry but that doesn’t prove anything. Only 10% of my friends with next gen consoles owns a XB1, that doesn’t mean that the PS4 is outselling the XB1 1:9.

        • Francisco

          Trust me, I think the reason why Xbox sells better here is because of the lower price the Xbox 360 had compared to the PS3´s, this caused the Xbox to win popularity and that´s why people still prefer it today.

          • Guest

            There were a lot of reason why the 360 was more popular.than the PS3. Price obviously but also because it could be pirated. It was way more popular in the US/UK, Canada….
            The X1 reveal, and all that followed changed everything. The XB1 was more expensive than the PS4, the whiole DRM, 24h check, forced kinect, lack of exclusives,… changed the mindset of many people.

            All official figures shows that the PS4 has been dominating sales and even in places where the 360 dominated. Until we have official figures that shows that the XB1 is dominating in Mexico, all this is just speculation.

    • ZhugeEX

      Official channels refer to when Sony ship the console to Brazil and it sells through at retail there.
      An unofficial/grey market sale is when Sony ship the console to the US, it’s sold at retail there, and then resold in Brazil. So the sale still counts. Just not officially.

      So the places I got these numbers from are listed at the bottom. They are market research firms who release a number of public and non public reports. I’ve collated this information in order to draw conclusions about the LATAM market and what happened through 2014.

      I actually don’t get paid to post on this site at all. The guys here were kind enough to give me a platform to post here as I’ve always been about bringing news to people about different markets outside of the US. In fact if you google my name followed by “China” or “Middle East” you can read my stuff on NeoGAF which talks about how PlayStation is dominating those markets.

      So there is no buzz or agenda that I’m trying to push here. Just trying to inform people 🙂

      • Stonecold

        Sony paupers can’t handle the truth.

        • Guest

          lol Go home little troll, let the grown ups talk.

          • Stonecold

            Go fuck yourself!

      • Where did you get all these numbers from?

      • Guest

        Sorry for the late reply.
        I have quite a few questions about some of the points you made. I will not talk of unofficial/grey market here.

        1) So you claim to have the numbers of units shipped to Brazil, Mexico and Argentina of both MS and Sony. Why don’t you give us the link to this? Also which of NPD, GfK, Newzoo, Euromonitor provided you with the info about Mexican/Argentinian and Brazilian numbers?

        2) In your article you talk about revenue by every Sony and MS consoles but that is not directly related to the how many PS4 or XB1 consoles are sold. Why even bring up revenue of a collection of consoles into this?

        3) You said, Latin America accounted for approximately 16% while for MS it’s greater than 20%. Howdid you get this number. I mean which of NPD, GfK, Newzoo, Euromonitor provided that information?

        4) You said “In 2014 it’s estimated that around 600,000 Xbox One’s and PlayStation 4′s were sold through to end users in Mexico, Brazil and Argentina with around 75% of those sales attributed to the Xbox One.”
        If we consider the revenue chart which showed a greater % revenue for Mexico and we consider the far greater price in Brazil this means that there was a lot more XB sold in Mexico compared to the Brazil.

        The most amazing thing about this statement is when we consider the domination of PS4 in all other countries and when we see the PS4 is leading in countries like US and UK, you are saying that in Mexico where XB1 launched 200$ more expensive the XB1 managed to outsell PS4 around 3:1. That just doesn’t make sense. And it’s not logical. I get that the price difference in Brazil might make the Brazil number plauisible, but the Mexican numbers doesn’t make sense since the XB1’s price in Mexico was actually higher.

        5) Going trough your numbers and your article, you claim that the XB1 sold in Mexico alone is more than 2 times how much the PS4 sold in Mexico, Argentina, Chile, Colombia, Costa Rica, Ecuador, El Salvador, Guatemala, Panama, Peru, Bolivia, Nicaragua, Paraguay, Uruguay.
        Can you let us know who among NPD, GfK, Newzoo or Euromonitor provided you with that information?

        6) From your graph; you claim the latin american market generated more than 2.5 times the amount generated by the asian market. Yet later you estimated that the combined total of PS4 and XB1 is around 600K. In Japan ALONE the PS4 sold way more than 600k. It was around 900K.

        7) The title to your article “Xbox One sells better than PS4 in Latin America in 2014” and the statement “In Latin America the Xbox One was the best selling next generation console in 2014 through official sales channels.” are not facts. These are just your PERSONAL estimations. You are making it sound like facts and news article are blindly taking your estimations without double checking the numbers or if everything makes sense.

        You said you’re here to inform us, so please reply to my 7 points.

      • Hey man…I was just wondering, as a fellow GAF member, I was really disappointed to to see you get banned. I always found your threads informative and insightful, and you were one of my favourite contributors on the site.

        Was there any legitimate reason why you got banned? I really hope it was a misunderstanding.

        Honestly, sorry for asking, but it’s just that I’m just really surprise considering your posts never stood out to me as malicious or with bad intent. Really sad to see that tbh, never saw it coming! :/

    • Stonecold

      Cry some more Sony pauperboy. Delicious Sony paupertears.

  • XbotMK1

    Well, Latin America needs to wake up because they’re dragging everyone else down by supporting sh*t standards from a sh*t company.

    But remember everyone, Phil Spencer said he doesn’t target PS4 sales and he doesn’t like console wars.

    • Matthew D.

      How are they dragging everyone else down? What standards are you talking about?

      • Fweds

        If you didn’t know XbotMK1 AKA “Kinect” “Derp” etc. Is a Sony damage control lapdog.
        He actively seeks out Xbox news to post negative garbage on.
        His comments are best flagged and ignored.

        • super6646

          Yup, he’s a troll. If you EVER see Xbot on discus, simply flag his comments.

        • Stonecold

          Yep, he’s the ultimate loser at real life Sony pauper.

    • Allfor1

      Stfu scrub. Gawd damn, die already. Sony drone. No one cares about your PSduh

      • Stonecold

        Find him, kill him, that easy.

        • Allfor1

          *rubs chin* thats tru lol

    • shane

      Soo With no games to play do you pony’s stroke your ps4 romantically saying soon baby, soon well have something new to feed you. Then give it a gentel kiss on top? If so you need to let it know its got no new games coming out Soon & all of the relationship was a one night stand..

    • jt3z

      Really from a guy with the name xbotMK1 lol Grow the fuck up kid

  • jacksjus

    Finally a territory that MS can claim this gen. Good for them I suppose.

    • xboxmaster

      umm, ps4 sell world wide 3 to 1 so microsoft can claim your ass and still it won’t be good for them

      • jacksjus

        The fugg are you talking about and how is that even relevant to my comment?

        • Allfor1

          Sony drones doing damadge control lately. They know a bite in the ass is coming. Cant wait to hear there excuses when they lose sales lead and it gets almost 1:1. Then what? No sales lead, no 1080p no games. Succs to be a jap lover

          • Stonecold

            Their greatness will NEVER come.

          • Allfor1

            Only thing missing is a chapter 11. And someone buys the PS brand. Ouch

        • Stonecold

          It’s called Sony pauperism.

      • Fweds

        Where are you getting you 3 to 1 sales figures ?.
        Even the totally inaccurate VGChart now have it LESS then 2 to 1

        • Karl Maly

          It’s 3 to 1 on easily ps4 has double its sales even more now that the price drop for ps4 is coming ps4 did better than wii u since the price drop in Japan and they love nintendo

          • shane

            Um , no! Even with the price cut ps4 is finally starting to sell decent. Japan is a more to mobile games and the gap between the 2 consoles isn’t 2 to 1.1.

      • jt3z

        3-1? Ps4 has 25.5 mil sold while Xbox one has 15 mil