US console hardware sales dropped sharply in May 2026, with PlayStation recording its weakest May performance since 2000 and Xbox posting its lowest May unit sales on record. The decline comes as higher console prices begin to affect buying decisions across the market.
PlayStation 5 unit sales fell 58% compared with May 2025, while spending on PS5 hardware declined 43% year over year. Xbox Series X and Series S unit sales were also down 12%, although Microsoft still generated 7% more hardware revenue because the average selling price increased.
The figures show a difficult reality for console makers. Higher prices can protect revenue in the short term, but they can also make it harder to attract new players. That issue could become more important as Grand Theft Auto VI approaches, with many people expected to consider a console purchase for the game.
Console Prices Are Rising Faster Than Sales
The average amount spent on new gaming hardware in the US reached $502 in May, up 14% from $440 a year earlier. PlayStation hardware had an average selling price of $672, a 33% increase, while Xbox Series hardware averaged $524, up 22%.
Sony raised PS5 prices in April, pushing the standard PlayStation 5 to $649.99 in the US. The Digital Edition now costs $599.99, while the PS5 Pro is priced at $899.99.
Microsoft has also announced another Xbox price rise that will take effect on August 1. Xbox systems with 512GB of storage will rise by $100, while 1TB models will increase by $150.
| Platform | May 2026 sales change | Average hardware price |
|---|---|---|
| PlayStation 5 | Unit sales down 58% | $672 |
| Xbox Series X and S | Unit sales down 12% | $524 |
| US gaming hardware overall | Average price up 14% | $502 |
Xbox Revenue Rose Despite Lower Console Sales
Xbox had fewer unit sales in May, but higher prices still lifted hardware spending by 7%. That may appear positive on paper, but it also highlights the risk of relying on price increases during a period when console demand is weakening.
Microsoft has blamed rising memory and storage costs for its latest increase. The company says console storage and memory prices have already risen by more than 2.5 times and could double again by late 2027.
The 2TB Xbox Series X model is also being discontinued. Microsoft is instead promoting financing, trade in programs, refurbished systems, and lower priced used consoles through retail partners.
Nintendo Switch 2 Continues to Lead the Hardware Market
Nintendo Switch 2 was the best selling gaming platform in the US during May in both unit sales and dollar sales. It also remains the leading hardware system for 2026 so far.
The console has reached an installed base of 5.9 million units in the US during its first 12 months. That gives Nintendo a strong position at a time when Sony and Microsoft are facing difficult questions about affordability.
The wider market now has expensive options across every major platform. Valve’s new Steam Machine starts at $1,049, while premium PlayStation and Xbox models are moving closer to high end PC pricing.
Console makers may earn more from each sale, but the higher entry cost could reduce the number of people willing to upgrade. The next several months will show whether major releases can overcome that pressure or whether buyers decide to stay with their existing hardware longer.
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