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US console hardware market at its most precarious position ‘since the 80s’, says Circana
Video Games Chronicle • • technology
Key Points:
- The US console hardware market is in its most precarious state since the early 1980s, with Xbox sales down 33% and PlayStation sales down 25% year-to-date through August, according to Circana.
- Xbox sales have hit an all-time low, while PlayStation sales are at their lowest since 2013, largely due to significant price increases driven by component shortages linked to AI data center demand.
- The average price for a new Xbox console in 2026 YTD is $529, a 26% increase from last year, and PlayStation consoles average $597, up 20%, reaching all-time highs and causing increased price sensitivity among consumers.
- The upcoming release of Grand Theft Auto 6 in November may boost console sales, but its impact depends on product availability amid ongoing RAM and component shortages, with potential for a Christmas console shortage.
- Xbox's chief strategy officer confirmed that demand exceeds supply, with production limited by component availability, despite efforts to maximize console distribution to retailers.
