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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 was published by Mat Piscatella, an analyst at Circana. According to him, Xbox posted the worst sales result in its history, based on the number of consoles sold in the US from January through August. PlayStation also has no reason to be pleased; its result is the lowest since 2013.
Consoles are getting more expensive
One of the main problems may be rising device prices. In the U.S., the Xbox Series X with a disc drive currently costs $799.99, while the PS5 Pro sells for $899.99. What's more, the average price paid for a new Xbox in the first eight months of the year was $529, or 26% higher than a year earlier. For PlayStation it was $597, a 20% increase. Both figures are record highs for the U.S. market. The price rises are driven in part by more expensive components and shortages of memory, for which AI data centers are reporting huge demand.
Manufacturers are pinning their hopes on the upcoming release of GTA VI, which could once again boost interest in consoles. The question, however, is whether players will be willing to spend ever-larger amounts on several-year-old hardware.
Sources: Tom's Hardware, bsky @ Mat Piscatella
