It is becoming increasingly expensive to be a gamer in 2026. Whether you are looking to pick up a PlayStation 5 or an Xbox Series X, the barrier to entry has never been higher, and recent market data suggests these costs are finally taking a toll on the industry.
According to Circana senior director and video game industry advisor Mat Piscatella, console hardware sales plummeted to historic lows this past May. The data paints a particularly grim picture for the current generation of hardware, with both major manufacturers seeing their worst May performance in decades.
PlayStation and Xbox Hardware Sales Data
The situation for PlayStation is the most significant drop in recent memory. Hardware unit sales for the platform fell to their lowest May total since the year 2000—a time when Sony was still rolling out the original PlayStation in Western markets and preparing for the launch of the PS2 in Japan.
If the numbers for PlayStation are concerning, the situation for Xbox is even more dire. Piscatella reported that Xbox hardware unit sales hit their lowest levels ever recorded for any May period. To put that in perspective, the company was moving more original Xbox consoles in May 2004 than it is currently selling Xbox Series X units in May 2026.
Why Are Console Sales Declining?
While the exact cause for the slump is debated, the primary factor appears to be the rising cost of hardware. The price of entry for a new console has reached hundreds of dollars, and even new entries into the market, such as Steam's latest console, are now priced at over $1,000.
Much of this price inflation is tied to the supply chain. The rise of AI has made essential console components increasingly scarce and expensive, forcing manufacturers to pass those costs on to consumers. As prices continue to rise, the market is naturally shrinking, leaving fewer people willing or able to purchase new hardware.
Though some have suggested that demand remains high—with Xbox previously claiming that people were buying consoles faster than they could be produced—the reality of the current sales figures suggests a significant disconnect between supply, pricing, and consumer interest. With costs for components unlikely to stabilize, these low sales figures may become the new normal for the industry moving forward.