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PS5 spent far more money on advertising than Xbox, according to a report

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The two-week period before the release of the new consoles was the most active video game category in 2020.

During this busy holiday week ahead, Sony and PS5, as well as Microsoft and Xbox Series X/S, continue to be sold out everywhere as the incoming stock sells out soon after. The competition between the two is still tight in some places, with PS5 leading the way in international and domestic markets, but with the Nintendo Switch very much in the balance.

Advertising spending may have made a difference, although this cannot be said for sure, as both companies have very limited stock; something that has been complicated by the coronavirus pandemic. Although in advertising spending, Sony takes the lead, as it has spent 3 times more than Microsoft in the month before the launch, as PS5 was released on November 12th in 7 countries and Xbox Series X/S on the 10th worldwide; furthermore, PlayStation has spent almost the same as the entire industry on advertising between October and November.

From 19 October to 15 November, Sony spent $15 million on advertising and Microsoft spent around $5 million, according to a new report from MediaRadar, which analyzed this spending on print, TV, and digital. The report found that Sony spent around $7.3 million up to launch day and Microsoft around $3 million, but in addition, Nintendo also increased advertising spending from 2 to 15 November by 138% more than the two weeks before that period.

Thanks to these three leaders, Todd Krizelman -CEO and founder of MediaRadar- states that those two weeks at the beginning of November were the most active in the video game category in terms of advertising expenditure in 2020; overall, $45 million were spent on advertising, an increase of 80%. The last month with a similar figure was April with $46.2 million, followed by January with $21.4 million. The report states that the arrival of new consoles also increased advertising spending on video games and shops during this period.

The new releases of the Call of Duty and Assassin’s Creed saga were launched to coincide with the consoles’ premiere, increasing advertising spending by 76% and shops by 28%. In apps, Krizelman says the week of November 9 was the first time since April that advertising spending increased, specifically by 23% over the previous year, so he believes the pandemic contributed to mobile advertising until November 9.

“It’s possible that less time on the move has affected mobile app advertising in this time,” he said. However, despite the fact that advertising investment has been sky-high, Sony and Microsoft opted for fairly similar ads.

PlayStation and Xbox took their viewers into fantastic worlds, including outer space, in advertisements promoting their respective console launches with PS5 and Xbox Series X/S. On one hand, PS5 invites you to continue exploring the unknown and on the other hand, Xbox with “Power your dreams” and actor Daniel Kaluuya.

I enjoy playing games, and gaming is a passion of mine. Among my favorite games are Tears of the Kingdom, GTA, and Cyberpunk.

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