US Xbox and PlayStation Hardware Sales Drop as Rising Component Costs Push Prices to Record Highs
US hardware sales for Xbox and PlayStation have dropped significantly, with Xbox sales down 33 percent and PlayStation units down 25 percent compared to the previous year, according to Circana analyst Mat Piscatella. Rising memory component costs, driven by AI data centres gobbling up RAM, have pushed average console prices to record highs of $529 for Xbox and $597 for PlayStation. Industry experts warn that memory shortages could persist for years, posing ongoing challenges for hardware manufacturers.
Key points
- US Xbox hardware sales are down 33% year-over-year, while PlayStation units are lower by 25%.
- Average console prices reached all-time US highs of $529 for Xbox and $597 for PlayStation.
- Circana analyst Mat Piscatella stated that the US hardware market is in its most precarious position since the early 1980s.
- Memory shortages driven by AI data centres are expected to persist, potentially impacting future console production and the upcoming launch of GTA 6.
What Happened
US hardware sales for major gaming consoles have seen steep declines. According to Circana analyst Mat Piscatella, Xbox hardware sales are down 33% compared to a year ago, marking an all-time low for Xbox year-to-date stats. Meanwhile, PlayStation hardware units are 25% lower, reaching PlayStation's lowest point since 2013.
Market Move
Console prices have climbed to unprecedented levels in the United States. Piscatella reported that the average price paid for a new Xbox console in the year-to-date period ending August reached $529, representing a 26% increase from the previous year. The average PlayStation console sold for $597, up 20% from the prior year.
Why It Moved
The price surges and subsequent sales declines are largely attributed to memory components being absorbed by AI data centres. This memory crunch has impacted consumer electronics broadly. Micron's CEO has warned that memory shortages could persist until at least 2028. Additionally, Xbox boss Asha Sharma noted that console storage component prices have multiplied significantly over the past two years, with further increases anticipated for the 2027 holiday season.
Key Numbers
Xbox hardware sales: Down 33% versus a year ago in the US.
PlayStation hardware units: Down 25% versus a year ago in the US.
Average US Xbox price: $529 (up 26% year-over-year).
Average US PlayStation price: $597 (up 20% year-over-year).
Why it matters
The dramatic decline in console sales and record-high prices highlight how broader supply chain pressures—specifically the high demand for memory components from AI data centres—directly impact consumer electronics, potentially reshaping the gaming hardware market for years to come.
What we know
- Circana analyst Mat Piscatella reported that US Xbox hardware sales are down 33% versus a year ago.
- PlayStation hardware units are reported to be 25% lower than the previous year.
- The average price for a new Xbox console in the US reached $529, and PlayStation reached $597, representing all-time highs.
