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"
PS5 and Xbox Series X/S consoles are more expensive than ever in most markets, thanks largely to memory components being gobbled up by AI data centres. Now, analyst Mat Piscatella worries the console market, at least in the US, hasn't looked this dire since the early 1980s, which was maybe not-so-coincidentally when the industry absolutely collapsed. Read more
Xbox and PlayStation hardware sales have hit record lows in the US market, according to analyst Mat Piscatella. The recent surge in prices for consoles, driven by a shortage of memory components used in AI data centers, has caused a significant drop in sales. Xbox hardware sales have plummeted by 33% compared to the same period last year, while PlayStation hardware units are 25% lower.
Both consoles now have an average selling price of $529 and $597 respectively, which are the highest in US history. The upcoming release of GTA 6 might provide a temporary boost, but it depends on pricing and product availability. If memory chips continue to be allocated to AI data centers, Microsoft and Sony will struggle to produce enough consoles to meet demand.
The US hardware market is now at a precarious point not seen since the early 1980s, when the industry collapsed. Memory shortages are expected to persist until at least 2028, according to Micron's CEO.
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