The US console market is facing its most precarious situation since the early 1980s, according to Circana analyst Mat Piscatella. Sales of Xbox consoles in the US dropped by 33% in the first eight months of 2026 compared to the same period last year, marking a historical low for the brand. PlayStation sales declined by 25%, reaching their lowest point since 2013.
Rising hardware costs are driven by a surge in memory prices, as console manufacturers compete with AI data center operators for supply. Micron expects this memory shortage to persist until at least 2028. Xbox head Asha Sharma noted that storage component procurement costs have doubled twice since autumn 2025, with further increases expected by the 2027 holiday season.
Average consumer prices for consoles have reached record highs in the US. Through August 2026, the average price paid for an Xbox was $529, a 26% increase year-over-year. The average price for a PlayStation rose by 20% to $597. Analysts suggest that the November release of GTA VI might partially mitigate the sales slump, provided that supply constraints do not limit availability.
