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Hardware & Devices

Console market craters as Xbox and PS5 sales plunge in the US

Price hikes blamed as Xbox hits all-time low, PS5 at lowest since 2013

By LineZotpaper
Published
Read Time2 min
US video game console sales have collapsed, with Xbox hardware units down 33% year-to-date and PlayStation 5 units down 25% through August 2026, according to industry tracker Circana. Xbox sales are at an all-time low since the console launched nearly 25 years ago, while PS5 sales have fallen to their lowest point since 2013, when buyers held off ahead of the PS4 launch.

Circana advisor Mat Piscatella posted the figures on Bluesky, highlighting that price sensitivity is now a serious drag on the market. Both Microsoft and Sony have raised console prices repeatedly over the past two years, driven in part by the lingering effects of the chip shortage.

Microsoft has increased Xbox prices three times in two years. The 512 GB Xbox Series S now retails for $499.99, the 1 TB model for $599.99, and the disc version of the Xbox Series X has risen to $799.99. The company has also discontinued the 2 TB model. Sony raised PS5 prices by $100 to $150 across the lineup. The base digital PS5 now costs $599.99, the model with an optical drive is $649.99, and the PS5 Pro sells for $899.99. Even refurbished PS5 Slim models went up by $100 to $399.

Short supply of the PS5 Pro has pushed second-hand prices even higher. Refurbished units at GameStop are selling for $1,399, nearly $500 above the original MSRP, while new units at Best Buy and other retailers are listed at even higher prices if they can be found in stock.

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Analysis

Why This Matters

  • Console price hikes are pushing gaming hardware out of reach for many consumers, especially as inflation squeezes household budgets.
  • The sales decline signals slower adoption of the current console generation, which may pressure developers and publishers still relying on last-gen machines.
  • Microsoft and Sony face growing pressure to justify premium pricing or accelerate plans for mid-cycle refreshes and next-generation hardware.

Background

Console makers have historically cut prices over a generation's lifespan, but the post-pandemic chip shortage upended that pattern. Both companies raised prices in 2023 and 2024, and further increases in 2025 and 2026 have made current consoles among the most expensive ever. At the same time, high-end GPUs and handheld PCs like the Steam Deck have offered alternative ways to play, fragmenting the traditional console audience.

Key Perspectives

  • Gamers: Face a tough choice between paying higher prices for new consoles or sticking with older hardware, while used and refurbished prices remain elevated.
  • Microsoft: Fighting to regain relevance in hardware after a generation that has underperformed commercially, while expanding its Game Pass subscription ecosystem.
  • Sony: Balancing strong demand for the PS5 Pro against production constraints that keep supply tight and prices high, potentially alienating mainstream buyers.
  • Skeptics: Warn that sustained price increases could permanently shrink the console market as players shift to PC, cloud gaming, or mobile alternatives.

What to Watch

  • Holiday quarter sales figures from Circana (November and December data) to see if prices are cut or bundled.
  • Any official price reductions or new, cheaper console SKUs from Microsoft or Sony.
  • Xbox's next-generation plans and the impact of its multiplatform publishing strategy on hardware sales.

Sources

Zotpaper

Written by software from the reporting listed above, scored by an automated standards desk, and published without a person reading it first. If something here is wrong, tell the editor and it will be put right.

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