PS5 and Xbox Sales Crash in US as Console Prices Hit Record Highs

Sales of PlayStation 5 and Xbox consoles have fallen sharply in the United States this year. New figures from market research firm Circana show that from January to August 2026, Xbox hardware sales dropped 33% and PlayStation hardware sales dropped 25% compared with the same months of 2025. The main reason, according to experts, is simple. Consoles have become too expensive for many buyers.

The numbers were shared on October 9 by Mat Piscatella, a video game industry analyst at Circana, on the social media platform Bluesky. He said Xbox sales in the US are now at their lowest level ever, while PlayStation sales are at their lowest point since 2013.

Weakest Numbers in Many Years

The first Xbox went on sale in 2001, so this is the brand's weakest US performance in almost 25 years. For PlayStation, the year 2013 matters. It was the end of the PS3 era, and many people stopped buying because the PS4 was coming out that November. This year there is no new PlayStation to wait for, which makes the fall more worrying for Sony.

August on its own was also poor. Total console sales in the US fell 15% to 559,000 units, the lowest August figure since 2013. In that month, PlayStation units fell 11%, Xbox units fell 31% and Nintendo units fell 15%. Money spent on console hardware so far this year stands at about $2.5 billion, which is 11% less than last year.

There was one small bright spot. PS5 dollar sales grew 17% in August, because each console now sells for more money. Nintendo's Switch 2 also remains the best selling console of 2026 in the US. Still, Piscatella said the US console market is in its most uncertain position since the early 1980s, when the American video game industry suffered a famous crash.

Prices Keep Going Up

Piscatella said price sensitivity is "becoming a real problem." His data shows that the average price an American paid for a new Xbox this year was $529, which is 26% higher than last year. For a PlayStation, the average was $597, up 20%. Both are all-time records.

Microsoft has raised Xbox prices several times in the last two years, most recently on August 1, 2026. The Xbox Series S now costs $499.99 for the 512GB model and $599.99 for the 1TB model. The Xbox Series X Digital Edition costs $749.99, and the version with a disc drive costs $799.99. Microsoft has also stopped selling the 2TB model.

Sony has taken the same path. The standard PS5 with a disc drive launched in 2020 at $499.99. It rose to $549.99 in August 2025 and then went up by another $100 this year to reach $649.99. The PS5 Digital Edition now costs $599.99, while the PS5 Pro, which launched at $699.99 in November 2024, now costs $899.99. The PlayStation Portal has gone up from $199.99 to $249.99, and even refurbished PS5 Slim units cost around $100 more than before.

This is unusual. In the past, every PlayStation became much cheaper a few years after launch. The PS5 is the first one that costs more today than it did on its first day.

The PS5 Pro is the hardest to find. In September it sold out at big US stores such as Amazon, Best Buy, Walmart and GameStop. GameStop has reportedly listed refurbished PS5 Pro units at $1,399, almost $500 more than the official price of a new one, and some online sellers are asking even more.

Why Consoles Cost So Much Now

The biggest reason is a global shortage of memory chips. Companies building artificial intelligence (AI) data centres are buying huge amounts of advanced memory. Large chip makers like Samsung, SK Hynix and Micron are giving these AI customers priority because they pay more, so less memory is left for consoles, laptops and phones.

When Microsoft announced its August price rise, it said the cost of memory and storage chips for its consoles had already more than doubled, and could double again by late 2027. Sony has also blamed rising part costs and pressure on supply chains. Nintendo raised the US price of the Switch 2 to $499.99 in September.

The shortage is even affecting future machines. Sony chief executive Hiroki Totoki has said the release date and price of the PlayStation 6 are still uncertain because of the memory crisis. On top of all this, living costs remain high in the US, so many families are delaying big purchases like a new console.

What It Means for Gamers in Pakistan

Gamers in Pakistan feel these price rises even more. Most consoles here are brought in by private importers, so local prices follow the dollar price, plus shipping, taxes and the shop's profit. When Sony or Microsoft raise prices abroad, shops in Karachi, Lahore and Islamabad usually raise theirs soon after.

In July, ProPakistani reported that the PS5 Slim Disc Edition was selling for around Rs. 258,000 in Pakistan. In September, an importer told the same outlet that the PS5 Pro was selling for about Rs. 350,000 at popular shops in the three big cities. For most households, that is a very large amount to spend on a games machine.

People planning to buy should compare prices at several shops, ask clearly about warranty, and be careful with offers that look much cheaper than the market. Since prices depend heavily on the dollar rate, local prices can change from week to week.

What Happens Next

The industry is now hoping for help from the holiday season and from Grand Theft Auto VI, which Rockstar Games plans to release on November 19, 2026, for PS5 and Xbox Series X and S. It is one of the most awaited games in years, and its hype has already increased demand for the PS5 Pro. Circana will release its September sales figures on October 22.

Relief on prices does not look close, however. Analysts expect memory chip prices to stay high, and some have warned of more increases in the coming months. For now, the numbers tell a clear story: as consoles get more expensive, fewer people are buying them.