Well, it seems like everyone is in general agreement here in regards to mid-gen console refreshes.
Is that still truly the case? At this point there should be roughly 35~40 million PS5 and XSX|S combined sold. A significant chunk of the "active" last-gen userbase has moved on. Certain games already sell a lot more on current-gen then they do on last-gen hardware. 80% of Gran Turismo 7's sales were on PS5 for example.
Grabbing a new unit off the store shelf without a reservation/pre-order is still difficult but that doesn't tell the whole story.
I think we should be careful when citing overall unit sales. Total unit sales equals a games total addressable market, but it doesn't equal the target market for a release.
While a tangible amount of people have moved to next gen, Sony still reported that 65% of PS Store revenue from April 2021 - March 2022 were from PS4 (
Source - Page 14)
While total sales are a good indicator of health, interest and trends, it's just one of the metrics needed to determine the viability of a release. I'm going to use the PS4 as an example since we have official sale numbers. It's total addressable market is 117 million, but, of that total who are publishers targeting with their releases?
There are many PS4's that are sitting dusty on shelves, the owners moved to other platforms, the owners have stopped gaming completely, the owners are invisible since they haven't spent money on that platform in the past "X" amount of months, or haven't logged into PSN to be tracked as MAU in many months. Now, of the active users remaining, how many of them even like the genre of game you are releasing?
So we take that 117 million total and reduce it to maybe half or even one-third of the total sales amount (if its a popular genre) and we will get a realistic target market.
So now, we look at a current gen estimate of 35-40 million Xbox Series + PS5s and apply a similar line of thinking and the target market reduces to an amount that may not even recoup the costs of today's expensive AAA titles. Risk is still too high.