The US console market is facing one of its weakest periods in decades as higher hardware prices continue to discourage buyers, with Xbox suffering the steepest decline among the major platforms.
Industry analyst Mat Piscatella says the market is in its most precarious position since the early 1980s. Through August 2026, Xbox hardware unit sales in the US were down 33 percent compared with the same period last year, marking an all time low for the brand.
PlayStation hardware units were down 25 percent during the same year to date period, reaching their lowest level since 2013.
Rising console prices appear to be one of the biggest factors behind the decline.
Console Prices Have Reached Record Levels
The average amount paid for a new Xbox console in the US during 2026 has reached $529, representing a 26 percent increase from a year earlier.
PlayStation buyers are paying even more. The average price of a new PlayStation console has climbed 20 percent to $597.
Both figures are record highs for their respective platforms in the US.
| Metric | 2026 performance |
|---|---|
| Xbox year to date hardware units | Down 33% |
| PlayStation year to date hardware units | Down 25% |
| Xbox average selling price | $529 |
| Xbox price increase | 26% |
| PlayStation average selling price | $597 |
| PlayStation price increase | 20% |
| August total hardware units | 559,000 |
| August hardware unit decline | 15% |
| August average hardware price | $541 |
The combination of fewer sales and higher prices creates an unusual market where hardware revenue can increase even while significantly fewer consoles are being sold.
That happened with PlayStation 5 in August. Hardware unit sales dropped 11 percent compared with August 2025, but dollar sales increased 17 percent because buyers paid considerably more for each console.
Xbox Had Its Weakest August Since 2020
Total US gaming hardware sales reached 559,000 units during August, down 15 percent from the same month last year.
It was the weakest August for overall console unit sales since 2013.
Xbox experienced the largest drop among the three major console manufacturers, with units falling 31 percent. That represented the platform's lowest August sales level since 2020.
PlayStation units declined 11 percent and reached their lowest August result since 2013.
Nintendo hardware sales were also down 15 percent.
Despite the broader slowdown, Nintendo Switch 2 remained the leading console in the US. It ranked first in both unit sales and hardware revenue during August and across the year to date period.
PlayStation 5 was second, while Xbox Series X and Series S remained a distant third.
Component Costs Are Increasing Pressure on Console Prices
Higher component costs are contributing to the problem.
Memory prices have risen as manufacturers prioritize demand from AI data centers, adding pressure to the cost of building consumer hardware.
Sony increased US PlayStation 5 prices in April. The standard PlayStation 5 and Digital Edition each became $100 more expensive, while the PlayStation 5 Pro increased by $150 to $899.99.
Xbox and Nintendo are dealing with similar cost pressures.
The average price paid for gaming hardware in August reached a record $541, compared with $476 a year earlier.
These higher prices are becoming increasingly important as consumers decide whether to replace existing consoles or enter the current generation for the first time.
GTA VI Could Provide a Major November Boost
Piscatella pointed to one major November release as a possible source of improvement for console sales.
Although he did not name the game directly, Grand Theft Auto VI is scheduled to launch on November 19, 2026 and is expected to become one of the year's largest releases.
A major game can encourage customers to buy new hardware, but any boost will depend on console availability and pricing.
Component shortages remain a concern, and supplies of some PlayStation 5 Pro systems have already tightened ahead of the launch.
If hardware remains expensive or difficult to find, even GTA VI may have limited ability to reverse the current decline.
Overall US Video Game Spending Also Fell
Weakness was not limited to console hardware.
Total US video game spending declined 9 percent in August to $4.3 billion.
Mobile spending fell 18 percent, while console content spending dropped 7 percent.
PC content was one of the few areas to record growth, increasing 13 percent.
Among premium games released in 2026, Resident Evil: Requiem continues to lead year to date US sales.
The current top ten also includes 007 First Light, NBA 2K27, MLB: The Show 26, Crimson Desert, Call of Duty: Black Ops II, Forza Horizon 6, Tomodachi Life: Living the Dream, LEGO Batman: Legacy of the Dark Knight and Pokemon: Pokopia.
The next major test for the US console market will come during the holiday period. GTA VI could generate substantial demand, but the underlying problem remains the same: consumers are being asked to pay record prices for hardware at a time when the cost of entering the console market continues to rise.
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