Circana: US Xbox unit sales fell 33% YoY to an all-time low in 2026 through August, while PS5 sales fell 25%, as both consoles hit record high average prices

Buying a new Xbox or PlayStation console now costs significantly more, with prices having reached an all-time high.

US sales of Xbox consoles have decreased by 33% year-over-year through August 2026, reaching an all-time low. Similarly, PlayStation 5 unit sales have fallen by 25% year-over-year, marking their lowest point since 2013. This decline is attributed to record-high average prices for both consoles, with the average Xbox selling for $529 (a 26% increase) and the average PS5 for $597 (a 20% increase) compared to the previous year. These price hikes are exacerbated by global memory component shortages, driven by AI data center demand, which are expected to persist until at least 2028. Analysts suggest the US hardware market is in its most precarious state since the early 1980s, a period that preceded a significant industry collapse. While the upcoming launch of Grand Theft Auto 6 is anticipated to provide some boost, its impact depends on pricing and product availability.

The ongoing memory component shortages, fueled by AI data center demand, are directly impacting consumer electronics prices, pushing console hardware costs to unprecedented levels. This situation suggests a potential long-term shift where the cost of next-generation gaming hardware may remain elevated, impacting affordability for a broader consumer base. The industry's reliance on these components makes it vulnerable to external market forces, potentially dictating product availability and pricing for years to come.

This precarious market position, reminiscent of the early 1980s industry collapse, signals a critical juncture for console manufacturers. The sustained price increases could lead to a fundamental re-evaluation of hardware sales strategies, with a greater emphasis possibly shifting towards subscription services or other recurring revenue models to offset declining hardware unit sales. Gamers might need to adapt to a new normal of higher upfront hardware costs, or look for alternative ways to access new games.