Console market craters as Xbox sales crash 33% to the lowest since launch 25 years ago, PS5 sales drop 25%
PlayStation sales dropped by 25% YTD compared to last year, while Xbox contracted by 33%, marking the biggest decline in retail sales over the past decade.
U.S. console sales have plummeted in 2026, with both PlayStation 5 and Xbox hardware units seeing significant drops in year-to-date sales. According to video game industry advisor Mat Piscatella, PlayStation 5 sales have declined by 25%, reaching their lowest point since 2013, while Xbox retail figures have hit an all-time low since its launch nearly 25 years ago, falling 33% year-to-date.
The Circana US Retail Tracking Service reported that Xbox hardware unit sales in the U.S. for the 2026 YTD period ending August were down 33% compared to the previous year, while PlayStation hardware units were 25% lower. The report attributes this downturn to price sensitivity among gamers, exacerbated by the chip shortage, which has caused console manufacturers to raise prices.
Microsoft has increased the price of the Xbox three times over the past two years, with the 512GB models now $100 more expensive and the 1TB models $150 more costly. The company even discontinued the 2TB model. This has pushed the Xbox Series S to $499.99 for the 512GB version and $599.99 for the 1TB version, while the Xbox Series X is now $749.99 for the Digital Edition and $799.99 for the disc version.
PlayStation fans have also faced price hikes, with Sony raising the base Digital Edition PS5 price by $100 to $599.99 and the optical drive version to $649.99. The PS5 Pro, priced at $899.99, is currently in short supply, leading to used prices reaching nearly $1,400. Even used consoles have been affected by inflation, with Sony increasing the price of refurbished PS5 Slim consoles by $100 to $399.
Despite these price increases, the PS5 Pro remains scarce, driving up used prices. The upcoming release of GTA VI and the holiday season may help consoles recover, but the U.S. hardware market is now more precarious since the early 1980s.
Written by urgent.news from Tom's Hardware's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
