US Console Market Faces Historic Low Amid Rising Prices
- PS5 and Xbox Series X/S console prices have surged due to memory component shortages.
- US sales for Xbox are down 33% and PS5 down 25% compared to last year.
- Micron forecasts memory shortages will last until at least 2028, affecting console production.
Prices for PS5 and Xbox Series X/S consoles have reached unprecedented highs in most markets, primarily driven by demand for memory components from AI data centres. Analyst Mat Piscatella from Circana expressed concern that the US console market hasn’t experienced such bleak conditions since the industry’s collapse in the early 1980s.
Piscatella recently shared insights online, highlighting that the price increases for Xbox and PlayStation consoles have significantly impacted sales. Specifically, Xbox hardware sales have decreased by 33% compared to the previous year in the US, while PlayStation hardware sales are down by 25%. These figures represent an all-time low for Xbox and the lowest point for PlayStation since 2013.
In 2026 year-to-date, the average price for a new Xbox console stands at $529, a 26% increase from last year, while the average price for a PlayStation console is $597, which is 20% higher than the prior year. Both prices are noted as all-time highs in the US, indicating growing price sensitivity among consumers.
There is some anticipation that the launch of GTA 6 next month could boost sales for both consoles. Piscatella noted that while Rockstar’s imminent release might “help ease at least some of these declines,” its impact will hinge on pricing and product availability. With significant RAM allocated for AI data centres, Microsoft and Sony may struggle to produce enough consoles to meet demand.
“The US hardware market has not been in a more precarious position since the early 80s,” Piscatella stated.
Additionally, the increase in RAM prices has affected a wide range of consumer electronic devices beyond gaming consoles. The PS5, Switch 2, and Xbox Series X/S have all seen their price tags raised multiple times over recent years.
Micron’s CEO recently indicated that memory shortages are expected to persist until at least 2028. Xbox CEO Asha Sharma echoed similar sentiments, stating, “When I joined as CEO in February, the price we paid for console storage components was over 2x as high as we paid last fall. These costs have since doubled again. And as we plan for the 2027 holiday season, we expect another significant increase, taking us over 5x the prices we paid only two years earlier.”
News Courtesy of Eurogamer
