Record prices have scared off Xbox and PlayStation buyers – the console market is facing a crisis, like in the 80s

Sales of Xbox consoles in the United States fell by a third in the first eight months of 2026, and PlayStation sales by a quarter amid record average prices. Circana analyst Mat Piscatella called the US console market at its weakest since the early 1980s, when the North American gaming industry collapsed.

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According to the analyst, in January-August, sales of Xbox consoles in the United States in physical terms fell by 33% compared to the same period last year, and PlayStation – by 25%. For Xbox this is the minimum result for such a period in the entire history of observation, for PlayStation – since 2013. The rise in price of consoles, fueled by rising memory costs amid the AI ​​boom, is becoming a serious obstacle for buyers.

“The average price a consumer paid for a new Xbox console in 2026 through August was $529, up 26% from a year ago. The average price of a PlayStation console was $597, up 20% from last year. Both values ​​reached record highs in the US. Price sensitivity is becoming a real problem.” Pisatella said. These are average actual purchase prices, not recommended prices for individual models.

The release of GTA VI in November could boost console sales towards the end of the year and, according to an analyst,“at least partially smooth out the decline” . However, the effect will depend on prices and availability of devices on sale. Memory shortages could limit Microsoft and Sony’s ability to ramp up production even as demand grows.“The US hardware market has not been in such a precarious position since the early 1980s.” ,” Pisatella noted.

As he writes EurogamerPlayStation 5, Xbox Series X/S and Switch 2 have already risen in price, some of them more than once. Console makers have to compete for memory supplies with data center operators for AI. Micron’s CEO recently warned that memory shortages will continue until at least 2028.

Xbox CEO Asha Sharma also previously reported a sharp increase in the cost of storage components for consoles. According to her, by the time of her appointment in February, purchasing prices were more than double the level of the previous fall, and then doubled again. By the 2027 holiday season, the company expects further price increases: the cost of these components could be more than five times higher than two years ago.