The global shortage of memory and storage chips is significantly impacting the gaming hardware market. According to Circana, gaming hardware sales fell by 15% in August compared to the previous year, marking the lowest level for that month in 13 years. Total consumer spending on gaming hardware dropped by 3% in August, with a year-to-date decline of 11%.
Major manufacturers including Microsoft, Nintendo, and Sony have increased console prices to offset rising component costs and tariffs. Sony's PlayStation 5 Pro, introduced in early 2024, is priced at $699. Meanwhile, the original digital edition of the PS5 launched in 2020 at $399, and the disc version at $499. Microsoft's Xbox Series S initially retailed for $299.
Matt Piscatella, executive director of games at Circana, noted that higher unit prices have directly led to a contraction in shipment volumes. Some retailers are listing second-hand PS5 Pro units for over $1000. The industry is now monitoring how these pricing trends will affect the upcoming release of Grand Theft Auto 6, as consumers may face a significant price gap compared to their expectations.
