Consoles sales across the US have hit historic lows as buyers push back against higher hardware costs. Circana tracking data reveals that Xbox unit sales dropped 33% between January and August, while PlayStation declined 25%. Industry analysts point to rising component prices and expect little relief before the launch of GTA VI later this year.
The steep volume drops mark historic lows for both platforms. Microsoft recorded its weakest sales figures in the history of the Xbox brand. Sony saw PlayStation volume fall to levels unseen since 2013, when consumers halted purchases of the PS3 ahead of the PS4 debut. Total dollar revenue remained steady only because consoles cost far more than in previous cycles. The average selling price for an Xbox climbed 26% to $529, while the average PlayStation purchase increased 20% to $597.
Circana analyst Mat Piscatella identified growing consumer sensitivity to hardware pricing as a major challenge for the entire gaming market. Factory component expenses have risen, driven largely by artificial intelligence firms buying up global supplies of system memory. Industry specialists do not expect component costs to decline in the coming years, leaving console manufacturers with little flexibility to lower retail prices.
From Circana's US Retail Tracking Service: For 2026 YTD ending August, Xbox hardware unit sales are down 33% versus a year ago in the US, while PlayStation hardware units are 25% lower. Xbox YTD US hardware unit sales are at an all-time low, while PlayStation is at lowest point since 2013.
— Mat Piscatella (@matpiscatella.bsky.social) October 9, 2026 at 3:00 PM
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Market recovery now depends on major software arrivals scheduled for the holiday shopping period. The planned November launch of GTA VI represents the primary catalyst capable of reversing the current sales slump. Retailers expect the Rockstar title to push fence sitters toward purchasing a PlayStation 5 or Xbox Series console, particularly if seasonal discounts appear.
