PlayStation and Xbox experienced their lowest console sales in 25 years in the United States last May. The data released by Circana, a leading global market research and data analytics firm, shows that hardware sales fell to their lowest since 2000.
PlayStation has historically led the console race, sometimes falling behind Nintendo in sales. Xbox has consistently come in third in the race. Therefore, it was not surprising that Xbox also experienced its worst console sales in May.
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According to the information shared on BlueSky by Circana’s Mat Piscatella, senior director and video game industry advisor, the drop in console sales is likely linked to the price hike resulting from storage and memory shortages.
The latest news coming from Xbox shows that from August 1, 2026, the price of each model of their consoles will rise by $100 or more. Xbox is also projecting the doubling of storage and memory prices by the fall of 2027, which may further affect console prices. From August 1, 2026, below are the prices you will pay for Xbox consoles.
- Series S 512GB: from $399 to $499
- Series S 1TB: from $449 to $599
- Series X 1TB Digital: from $599 to $749
- Series X 1TB: from $649 to $799
The data shared by Piscatella shows that the average price of a new unit of video game hardware climbed to $502 in May, representing a 14% increase compared to the previous year’s average of $440. In the month under review, the price of PS5 rose by 33% compared to last year’s $672, while the average price of Xbox Series increased by 22% to reach $524.
Nintendo Switch 2 numbers improved console sales
While PlayStation and Xbox gaming hardware struggled in May, Nintendo Switch 2 continued an impressive first-year run. The Circana report shows that Switch 2 has become the second-fastest-selling gaming console in United States history.
In the first 12 months of release, Switch 2 sold 5.9 million units in the United States. Game Boy Advance retains the record as the fastest-selling console in the United States with over 6.5 million units sold in the first year.
Overall, there was an increase in spending on video games in the United States in the month of May 2026. $4.2 billion was spent on video games, representing a 3% rise compared to the same period last year.
Do you think the rising video game hardware price will cause a further slowdown in purchases? Share your thoughts in the comment box below.
