Rising prices are changing the console market
A continuing component shortage is putting pressure on video-game hardware sales in the United States. New U.S. retail data from Circana shows Xbox hardware unit sales fell 33% year to date through August 2026 compared with the same period in 2025. PlayStation hardware sales were down 25%.
For 2026 year-to-date sales ending in August, Xbox hardware units were down 33% year over year in the U.S., while PlayStation hardware units declined 25%. Xbox reached an all-time low for year-to-date U.S. hardware sales, while PlayStation recorded its lowest result since 2013. — Mat Piscatella
August itself was also weak. PlayStation unit sales dropped 11% year over year, producing the lowest August total since 2013. Xbox declined 31%, its weakest August since 2020, while Nintendo hardware sales fell 15% compared with August 2025. Circana had reported similarly difficult results for July.
For readers weighing a new system against an arcade machine, the console figures highlight how much hardware costs have changed. Each of the three major console makers has increased prices during the past 18 months.
- Xbox Series X has received several increases and now costs US$799.99, US$300 above its launch price.
- The standard PlayStation 5 rose from US$499 to US$549.99 in August 2025, then increased by another US$100 in April 2026.
- Nintendo Switch 2 became US$50 more expensive in September 2026.
Why are console prices increasing?
Technology companies are expanding artificial-intelligence data centres, prompting memory manufacturers Samsung, SK Hynix and Micron to redirect substantial production away from consumer RAM towards memory used by those facilities. The resulting component shortage affects consumer electronics, including game consoles, and raises manufacturing costs that are being passed to buyers.
Circana’s average price data reflects that pressure. Through August 2026, the average new Xbox sold in the U.S. for US$529, an increase of 26% from the previous year. The average PlayStation reached US$597, up 20%. Both figures are record highs for those systems, despite their launches being almost six years earlier. Hardware prices would normally fall as a platform seeks to reach more customers.
For a lower-cost gaming setup, compact options such as bartop arcades offer a different path from buying a current-generation console. Buyers comparing formats can also use RETROCADE’s arcade machine buying guide to consider cabinet size, controls and available space.
The expected arrival of Grand Theft Auto 6 is likely to lift console sales in the short term. However, technology companies have indicated that buyers should not expect hardware prices to fall soon.
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