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The console market is experiencing a serious crisis. The latest data from analytics firm Circana show that sales of Xbox and PlayStation consoles in the United States are falling sharply. In the first eight months of 2026 Xbox sales fell by as much as 33%, and PlayStation by 25% compared with the same period last year. Are rising hardware prices to blame?
The data were published by Mat Piscatella, an analyst at Circana. According to him Xbox recorded the worst sales performance in its history, based on the number of consoles sold in the US from January to August. PlayStation has no reason to be pleased either. Its result is the lowest since 2013.
Consoles are becoming increasingly expensive
One of the main problems may be rising device prices. In the US, the Xbox Series X with a disc drive currently costs US$799.99, while the PS5 Pro is priced at US$899.99. Moreover, the average purchase price of a new Xbox in the first eight months of the year was US$529, which is 26% higher than a year earlier. For PlayStation it was US$597, representing a 20% increase. Both figures are record highs for the US market. The price rises are driven in part by rising component costs and shortages of memory, for which AI data centres are reporting huge demand.
The upcoming release of GTA VI offers hope for manufacturers, as it could again boost interest in consoles. The question is whether players will be willing to spend increasingly large amounts on several-year-old hardware.
Sources: Tom's Hardware, bsky @ Mat Piscatella
