US Console Sales Sink to 1980s-Era Lows as Xbox Drops 33%
US console sales fell to 1980s-era lows in 2026, with Xbox units down 33% and PlayStation down 25% through August, per Circana data.
US console sales have fallen to their weakest level since the early 1980s, according to Circana's retail tracking data for the year through August 2026. Xbox hardware unit sales in the United States are down 33% year over year, an all-time low for the platform, while PlayStation units are down 25%, their lowest point since 2013.
Mat Piscatella, Circana's US industry analyst, has characterised current hardware conditions as worse than at any point since the early 1980s. The decline follows a run of price increases from Microsoft, Sony and Nintendo, which have raised console prices several times in less than two years. Reporting based on Circana's data attributes those hikes mainly to higher memory costs linked to AI data centre demand and to tariffs.
Prices are doing the damage
Circana's figures put the average price paid for a new Xbox console in 2026 at $529, up 26% from a year earlier. The average PlayStation console sold for $597, up 20%. Some consoles now cost more than $800 in the US, according to reporting that cites the same data.
Higher prices have pushed buyers away from new hardware even as dollar figures hold up in places. In August, PS5 was the only system whose dollar sales grew, which indicates that Sony is selling fewer units at higher prices rather than adding customers.
August shows the slide is still deepening
US hardware unit sales fell 15% in August to 559,000 units, the weakest August since 2013, according to Circana. Nintendo hardware units dropped 15% over the same month. The monthly figures indicate the category has not stabilised going into the autumn buying period.
Retailers have flagged the possibility of stock shortages over the holiday season, as the market approaches the GTA 6 release. For shoppers, that means paying more for each console while facing the risk of limited stock at the point when demand typically peaks.
Why this matters: Circana's figures show the US console market shrinking in units while the price per console climbs. Buyers who wait for lower prices may face a long wait, and retailers face the risk of stock gaps during the holiday period.
AI-generated image.
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Researched and cross-referenced against primary sources by the Bytevyte editorial team. This article was generated with the assistance of artificial intelligence and reviewed by the Bytevyte editorial team.