Share of what, measured how
“Platform A has the largest share” sounds precise, but it is incomplete until you know what is being divided. This article does not quote any figures, because the numbers change and depend on the source. It is about how market share statements are built and how they can mislead, so you can judge them yourself.
The measures behind a share
A share is always one part divided by a total. The choice of part and total changes the result.
Units. The count of devices or copies. Hardware units are easy to describe, but they do not say how much the devices are used. Software units can be inflated by free or discounted copies.
Revenue. Money earned. This can include hardware, software, in-game purchases, subscriptions and advertising, or only some of them. A platform selling fewer, pricier items may lead in revenue and trail in units.
Active users. People who use a platform in a period such as a month. The definition of “active” varies. Some counts include a single login; others need regular play.
Installed base. The total number of devices in use over time, rather than those sold in one period. This mixes new and old devices, and not every old device is still used.
Playtime. Hours spent on each platform. It favours platforms with long sessions and says nothing about spending.
Software sales on a platform. Useful for measuring how much developers can earn there, but affected by a handful of very successful titles.
Each answers a separate question. Using them interchangeably is the most common error.
Shipped versus sold
For hardware, “shipped” usually means sent from the manufacturer to retailers or distributors, while “sold” means bought by customers. They can differ, especially around launches when retailers stock up or if products sit unsold. Companies sometimes report one and journalists assume the other. Neither tells you how many people play.
Defining the market
The total in the denominator depends on which platforms are counted.
- If “gaming” includes only dedicated consoles, PCs and phones fall outside it.
- If it includes everything, a mobile platform with huge numbers of casual players may dominate user counts while a console leads in premium software revenue.
- Different regions have different leaders. A global average can hide strong regional differences.
- Hybrid devices fit awkwardly: is a portable that also docks to a television a handheld or a home console?
The consequence is that “market share” often compares things that are not comparable. Mobile games, cloud streaming and handheld PCs, discussed in emerging platforms, make these boundaries even less clear.
Why numbers can mislead
Even correct figures can create a false impression.
- Time window. A share during a launch period can differ from a share across a generation. Cherry-picked periods can flatter a platform.
- Different generations. Comparing a new system with one near the end of its life is not like for like, as explained in console generations.
- Percentages without bases. A rise from a small portion to a slightly larger one is described as growth, but the practical change may be tiny.
- Averages. An average hides spread. If a few people spend heavily, average spending per user does not describe a typical user.
- Survey bias. Surveys depend on who responded. Online panels may over-represent enthusiasts.
- Estimation. Many market numbers are estimates built from limited data and assumptions, and different firms disagree.
- Charts. Truncated axes and selective categories can exaggerate small differences.
- Correlation. A platform’s popularity does not by itself show that its design is better, only that more people use it for some reason such as price or exclusive games.
Who publishes the numbers
Sources matter. Companies publish measures that suit them and may stay silent about others. Market research firms sell estimates and may not reveal method. Trade bodies and retailers each see only part of the market. Digital stores often hold data nobody else can verify. None of these is automatically wrong, but each has a viewpoint and limits.
Digital sales add a further gap. Because many platforms do not publish digital sales, public counts of physical sales can under-represent a title or system, a point related to digital distribution.
A checklist for any share claim
- What exactly is the numerator: units, revenue, users, hours?
- What is the denominator: which platforms and regions?
- What time period is covered?
- Is the figure shipped, sold or estimated?
- Who produced it, and could they gain from a particular result?
- Is the method explained?
- Can the same claim be found in independent sources?
- What would the claim not tell you?
What market share is useful for
Share is a reasonable indicator of the scale of a platform’s audience, which affects how much developers invest in it. A larger audience can mean more games and more online players. It does not show whether games on it are better, whether it suits you or whether it will remain popular. For personal choices, the questions of what you want to play and where your friends are usually matter more than any ranking.