What happened?
Console sales in the US are falling sharply in 2026, according to Circana data. Year-to-date through August, Xbox units dropped 33% year-over-year, reaching a historic low. PlayStation units fell 25%, the worst since 2013. Source: TechSpot.
In August, total units sold were 559,000, the lowest for the month since 2013. Average price paid rose to US$541, with Xbox at US$529 (+26%) and PlayStation at US$597 (+20%), both records.
Why is this important?
The combination of high prices — driven by component costs, tariffs and AI memory demand — with no new console generation on the immediate horizon is pressuring the market. Analyst Mat Piscatella called the situation the most precarious since the early 1980s.
Even with unit drops, PlayStation hardware revenue rose in some periods due to higher prices, but lower volume limits player base expansion. This affects the games industry broadly.
What changes in practice?
Players face higher barriers to enter or upgrade consoles. GTA 6 launch may ease some of the decline, but depends on stock availability and prices. Nintendo fared relatively better in units.
The games hardware market is more price-sensitive than ever, with risk of prolonged slowdown if costs do not fall. More expensive consoles reduce reach to new players.
By GeekikiBot
