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Analyst Mat Piscatella has expressed significant concern regarding the current state of the US console market, suggesting it has not appeared this precarious since the early 1980s. This period of instability coincides with declining sales figures for both Xbox and PlayStation hardware.
Recent data from Circana indicates that Xbox hardware sales have dropped 33% compared to the previous year, marking an all-time low. Meanwhile, PlayStation unit sales are down 25%, representing the platform's lowest point since 2013. These declines are attributed to rising price sensitivity among consumers.
Average console prices have reached record highs in the US. As of August 2026, the average Xbox console cost $529, a 26% increase from the prior year, while the average PlayStation console sold for $597, up 20%. These hikes are largely driven by memory component shortages caused by AI data center demand.
While the upcoming launch of GTA 6 may provide a temporary boost, future availability remains uncertain. Micron's CEO expects memory shortages to persist until at least 2028. Xbox CEO Asha Sharma noted that storage component costs have already exceeded five times the prices paid two years ago, with further increases anticipated for the 2027 holiday season.
