Xbox Sales Hit Historic Low in the US as PlayStation Sales Fall to Their Lowest Level Since 2013

The US video game console market is facing a difficult year as rising hardware prices coincide with falling sales of Xbox and PlayStation systems. New figures for 2026 show that Xbox hardware sales have reached a record low, while PlayStation sales have dropped to their weakest level since 2013.

According to Circana analyst Mat Piscatella, US Xbox hardware unit sales declined by 33% year over year through August 2026. PlayStation hardware sales also experienced a significant slowdown, falling by 25% compared with the same period in 2025.

The figures highlight the growing challenge console manufacturers face as gaming hardware becomes more expensive for consumers.

Rising Console Prices Put Pressure on Sales

One of the major factors behind the decline is the increase in average console prices. According to Piscatella's data, the average price paid for an Xbox console in the US reached $529 during the first eight months of 2026, representing a 26% increase compared with the previous year.

PlayStation consoles recorded an even higher average selling price of $597, up 20% year over year. Both figures represent record highs for their respective platforms in the US market.

Higher prices may be discouraging consumers from upgrading their existing systems or purchasing a new console. With household budgets under pressure, buyers may be more likely to delay purchases until prices fall or attractive holiday discounts become available.

August Console Sales Also Show a Significant Decline

The slowdown continued in August, when total US video game hardware sales fell by 15% compared with August 2025. Approximately 559,000 consoles were sold during the month, marking the weakest August result since 2013.

PlayStation hardware unit sales declined by 11%, reaching their lowest August level in 13 years. Xbox sales dropped by 31%, giving the platform its weakest August performance since 2020. Nintendo hardware sales also fell by 15%.

Meanwhile, the average price of a newly purchased console reached $541 in August, compared with $476 during the same month a year earlier.

These results suggest that increasing prices are becoming a significant obstacle for the console industry, even as manufacturers continue to offer established gaming platforms.

PlayStation Revenue Increases Despite Fewer Sales

Although PlayStation hardware unit sales declined, Sony's console revenue in August increased by 17%, according to the reported figures.

The difference between unit sales and revenue illustrates how higher prices can affect market performance. Consumers may purchase fewer consoles, but manufacturers can still generate more revenue if the average selling price rises sufficiently.

However, increased revenue does not necessarily mean that more people are buying PlayStation consoles. The drop in unit sales remains an important indicator of consumer demand.

Nintendo Switch 2 Leads the US Console Market

Nintendo performed comparatively well in the overall market rankings. The Nintendo Switch 2 led US console hardware sales in both units sold and revenue during August, and it also held the leading position for the year to date.

The PlayStation 5 ranked second in both categories, while Microsoft's Xbox Series X and Series S systems trailed their competitors.

Nintendo's position shows that the market slowdown has not affected every platform in exactly the same way. Product appeal, software availability, pricing and the timing of major releases can all influence consumer purchasing decisions.

Could Upcoming Games Help Console Sales Recover?

Major game releases could provide a boost to console demand during the holiday shopping season. The anticipated launch of Grand Theft Auto VI in November 2026 may encourage some consumers to purchase new hardware, although the size of any potential recovery remains uncertain.

High console prices and hardware supply constraints could limit the impact of major releases. Consumers who want to play new games may still decide to wait for discounts rather than pay record prices for gaming systems.

The coming holiday season will therefore be an important period for Sony, Microsoft and Nintendo as they compete for consumer spending.

Conclusion

The latest US sales figures reveal a challenging period for the console industry. Xbox hardware sales fell 33% year over year through August, while PlayStation sales declined by 25%. At the same time, average console prices reached record levels, creating additional pressure on consumers.

Nintendo Switch 2 currently leads the US market in both hardware units sold and revenue, while PlayStation remains ahead of Xbox in the reported rankings.

Whether upcoming game releases and holiday promotions can reverse the downward trend will depend on pricing, product availability and consumers' willingness to invest in new gaming hardware.