Console Market Hits Historic Lows as AI-Driven Price Hikes Crush PS5 and Xbox Sales
The US console market is in its worst shape in decades, with PlayStation 5 and Xbox Series X/S sales sinking to new lows in 2026, according to fresh Circana data. Analysts warn that the hardware market has not been in a more precarious position since the early 1980s, a period that preceded the infamous video game crash of 1983. The culprit, analysts say, is a dramatic surge in console prices driven by a shortage of memory components, as AI data centres continue to consume a massive share of global RAM supply, leaving consumer electronics manufacturers scrambling and consumers facing all-time-high price tags at retail.
The situation raises serious questions about the near-term health of the console industry, with even the long-anticipated release of Grand Theft Auto 6 potentially unable to reverse the trend. When hardware is priced out of reach for a broad audience, even blockbuster software may struggle to drive the kind of console adoption that publishers and platform holders depend on. With no clear resolution to the AI-driven memory crunch in sight, both Sony and Microsoft find themselves navigating one of the most challenging hardware environments in the history of the modern gaming industry.
Key Insights
- 1PS5 and Xbox Series X/S console prices have reached all-time highs in 2026, according to Circana data, largely due to memory component shortages caused by AI data centre demand.
- 2A market analyst has stated the US hardware market has not been in a more precarious position since the early 1980s, evoking comparisons to the era just before the 1983 video game crash.
- 3The global competition for RAM between AI infrastructure and consumer electronics is a key structural driver of the current console pricing crisis.
- 4Even a high-profile release like Grand Theft Auto 6 may not be enough to rescue the struggling console hardware market if prices remain prohibitively high.
- 5Both Sony and Microsoft are under significant pressure as declining hardware sales threaten the broader ecosystem of publishers and developers who rely on a large installed base.
Sources
As Xbox and PlayStation sales reach new lows, analyst says the "US hardware market has not been in a more precarious position since the early 80s"
Eurogamer · 1d ago
US console market hasn't been this bad "since the early 80s," analyst says
GamesRadar · 1d ago
High Console Prices Push Playstation and Xbox Sales to New Lows
Polygon · 1d ago
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