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The United States video game console market is experiencing a significant downturn. According to Circana industry advisor Mat Piscatella, year-to-date hardware unit sales through August 2026 show a 33% decline for Xbox and a 25% drop for PlayStation compared to the previous year.
These figures represent historic lows for both platforms. Xbox hardware sales have reached their lowest point since the brand launched nearly 25 years ago. Meanwhile, PlayStation 5 sales have fallen to their lowest level since 2013, a period when consumers delayed purchases ahead of the PlayStation 4 release.
Piscatella attributes this decline to heightened price sensitivity among consumers, exacerbated by inflation and chip shortages. Microsoft has increased Xbox prices multiple times, with the Series X now reaching $799.99. Sony has similarly raised costs, with the PS5 Pro priced at $899.99 and the PlayStation Portal rising to $249.99.
Supply constraints further complicate the market, as refurbished PS5 Pro units are appearing at retailers like GameStop for $1,399. While industry analysts hope the upcoming holiday season and the November release of GTA VI might stimulate demand, the current hardware market remains in its most precarious state since the early 1980s.
