DFC Intelligence today announced that it was lowering its 2022 forecast for the global console market due to worse than expected supply constraints.
Previously, the firm expected console revenues to be up 8% for the full year, but now that has been trimmed to 4%, totalling $49 billion.
"We already had forecasted PS5 units would be limited but now we think it is worse," DFC's David Cole told GamesIndustry.biz.
DFC said the shortages are impacting the sales potential for both hardware and software throughout the year, with Sony expected to be hurt the most in the situation due to gap between supply and demand for the PS5.
"Going forward the big question is whether the PlayStation 5 shortage will allow Microsoft to gain ground with both Xbox Series X/S and its Game Pass online service," DFC said.
"Recent DFC consumer surveys show that the PlayStation 5 is still the preferred system by a significant margin. However, as Microsoft continues to build up a content library this could change."
The firm projects that by 2026, Microsoft will grow its share of the console market from 20% to 27%, taking nearly equal shares from Sony (43% last year, expected to be 39% in 2026) and Nintendo (37% last year, and 34% in 2026).