Console Sales Plummet in US Market
Video game console sales in the U.S. have cratered, with both the PS5 and Xbox seeing a massive drop in year-to-date sales through the end of August compared with last year. Mat Piscatella, the video game industry advisor at research firm Circana, shared the numbers: PlayStation 5 sales have dropped by 25%, reaching their lowest point since 2013, when gamers held off buying PlayStation consoles in anticipation of the PS4. Xbox’s retail figures have cratered by 33% year-to-date, putting its sales numbers at an all-time low since its launch 25 years ago.
According to Circana's US Retail Tracking Service, for 2026 year-to-date ending August, Xbox hardware unit sales are down 33% versus a year ago in the US, while PlayStation hardware units are 25% lower. Xbox year-to-date US hardware unit sales are at an all-time low, while PlayStation is at its lowest point since 2013.
Xbox Sees Multiple Price Hikes
Piscatella noted that price sensitivity is a growing concern among gamers, especially as chip shortages have compelled console manufacturers to increase prices. Microsoft has raised Xbox prices three times in the past two years. The 512GB versions jumped by $100, and 1TB models became $150 more expensive. The 2TB model has also been discontinued. This brings the Xbox Series S to $499.99 (512GB) and $599.99 (1TB), while the Xbox Series X Digital Edition now costs $749.99, with the disc version priced at $799.99.
PlayStation Also Affected by Rising Costs
PlayStation fans have also faced price increases, with Sony raising console prices by $100 to $150. The base Digital Edition PS5 now costs $599.99, and the version with an optical drive is $649.99. The PS5 Pro is priced at $899.99, and the PlayStation Portal for streaming games now costs $249.99, a $50 increase from its launch price. Even refurbished PS5 Slim consoles saw a $100 bump, reaching $399.
Despite higher prices, the PS5 Pro remains in short supply, which has driven used prices significantly upward. Refurbished PS5 Pros are listed at $1,399 at GameStop, nearly $500 more than the MSRP for a new unit (if available). While this price is substantial, it is approximately $100 less than new units found at Best Buy and Walmart, and sealed units on online marketplaces sell for slightly less.
Market Outlook Remains Precarious
Price increases, driven by AI chip shortages, combined with rising living costs, have made console purchases a lower priority for many families, contributing to this significant downturn in retail sales. The upcoming release of GTA VI in November and the holiday season may help console sales recover. However, Piscatella warns that the U.S. hardware market is more precarious than it has been since the early 1980s.
