U.S. video game console sales have dropped significantly through August 2026, with PlayStation 5 units down 25% and Xbox hardware sales crashing 33% year-to-date, according to data shared by Circana industry advisor Mat Piscatella. Driven by persistent price hikes and cost-of-living pressures, Xbox hardware has reached an all-time low since its launch almost 25 years ago, while PlayStation sits at its lowest point since 2013.
Hardware Sales Hit Historic Lows Across Platforms
The latest figures from Circana’s U.S. Retail Tracking Service outline a severe downturn for current-generation hardware. For the year-to-date period ending in August 2026, Xbox hardware unit sales fell 33% compared to the same timeframe a year prior, placing the brand at an all-time low since its launch almost 25 years ago.
Sony’s flagship console is experiencing a comparable slump. PlayStation 5 hardware units dropped 25% year-to-date, mirroring market conditions last seen in 2013 when buyers delayed purchases ahead of the PS4 generation. Piscatella noted that the broader U.S. hardware market has not faced this level of precarity since the early 1980s.
Component Constraints and Repeated Price Hikes
Global chip shortages and rising manufacturing costs have forced console makers to repeatedly increase retail prices over the past two years. Microsoft has raised Xbox prices three times during this window, removing the 2TB model entirely while pushing the 512GB Xbox Series S to $499.99 and the 1TB version to $599.99. Meanwhile, the digital-only Xbox Series X commands $749.99, and the disc-drive version sits at $799.99.
Sony implemented similar price increases, raising system costs by $100 to $150. The base Digital Edition PS5 now retails for $599.99, and the disc-drive model costs $649.99. The high-end PS5 Pro carries an MSRP of $899.99, and the handheld streaming accessory, the PlayStation Portal, climbs to $249.99 after launching at $199.99.
Supply Shortages Inflate the Secondhand Market
Despite weak new-unit retail volume, the PS5 Pro remains constrained in official retail channels, creating massive inflation in the secondary market. GameStop lists refurbished PS5 Slim consoles at $399 following a $100 price bump, while refurbished PS5 Pro units command $1,399 on the same platform—almost $500 above the MSRP of a new one. Major big-box retailers and peer-to-peer online marketplaces show similar pricing trends for available stock.
Consumer price sensitivity, amplified by broader economic inflation, has pushed dedicated gaming hardware down household priority lists. Industry observers look to upcoming software catalysts, such as the scheduled November release of GTA VI and the traditional holiday shopping window, as potential drivers for a market rebound.
