US Console Sales Hit Record Lows as AI-Driven Memory Costs Drive Prices Up

Analyst Mat Piscatella of Circana reports that U.S. hardware sales for Microsoft’s Xbox line are down 33% year-over-year, while Sony’s PlayStation units have fallen 25% in the same period. These declines represent the lowest year-to-date figures for Xbox ever recorded and the weakest PlayStation performance since 2013. At the same time, average consumer prices have reached historic highs: $529 for a new Xbox console (up 26%) and $597 for a PlayStation console (up 20%) compared with the previous year. “The US hardware market has not been in a more precarious position since the early 80s,” — Mat Piscatella, analyst “The average price a consumer has paid for a new Xbox console in 2026 YTD ending August is $529, 26% higher than a year ago, while the average PlayStation console has sold for $597, 20% higher than last year,” — Mat Piscatella, analyst “Price sensitivity is becoming a real problem,” — Mat Piscatella, analyst

As Xbox and PlayStation sales reach new lows, analyst says the "US hardware market has not been in a more precarious position since the early 80s" US console sales hit new lows as analyst warns of the worst hardware market since the early 1980s Record Decline Amidst Record Prices: Xbox Sales in the US Hit an All-Time Low, While PlayStation Shows Worst Result Since 2013 Forbes

The price spikes stem from a shortage of DRAM, which has been redirected to AI data-center workloads. Micron’s CEO Sanjay Mehrotra warned that the shortage will likely continue until at least 2028. Microsoft’s Xbox CEO Asha Sharma echoed the pressure, noting that the cost of storage components has risen more than fivefold since she took the role in February, forcing manufacturers to raise retail prices across the board.

US console sales hit new lows as analyst warns of the worst hardware market since the early 1980s

Despite the unit decline, Sony’s August revenue rose 17% because higher prices offset lower volumes. Nintendo’s Switch 2 led the market in both units and revenue for August, while Xbox’s share slipped to the lowest level since 2020. Total U.S. console sales in August fell 15% year-on-year to 559 thousand units, the worst August result since 2013.

Record Decline Amidst Record Prices: Xbox Sales in the US Hit an All-Time Low, While PlayStation Shows Worst Result Since 2013

Micron’s Mehrotra reiterated that memory scarcity will persist, signaling ongoing cost pressures for all console makers.

US console sales hit new lows as analyst warns of the worst hardware market since the early 1980s

Analysts suggest that the upcoming launch of Rockstar’s *GTA 6* in November could provide a temporary sales boost, provided consoles remain in stock at affordable prices. Piscatella cautioned that the magnitude of any rebound will depend on pricing stability and product availability.

US console sales hit new lows as analyst warns of the worst hardware market since the early 1980s