Console makers keep telling us this generation is healthy. The latest US retail numbers say something different, and the explanation is not complicated: a PS5 now costs a lot more than it did, and fewer people are paying it.
The numbers, and where they come from
The figures come from Circana’s US retail tracking, covering its August report and the year to date through August. Circana analyst Mat Piscatella shared them on Bluesky on October 9, and Push Square picked them up. We have not seen the underlying Circana report, so these are the numbers as relayed by those two.
On PlayStation, hardware unit sales are down 25% year over year so far in 2026, which Piscatella described as the lowest point since 2013. Xbox is in worse shape: unit sales are down 33%, an all-time low for the brand in the US. Yet the PS5 was the only system whose dollar sales actually grew in August. Fewer boxes, more money per box.
Price is the whole story
The average selling price of a PS5 this year is $597, up 20% from last year, according to the same data. Xbox Series X|S average selling prices are up 26%. Part of the PS5 jump comes from the pricier PS5 Pro pulling the average up, but that is not the full picture. Prices have simply gone the wrong way for a product that is already years old.
That is unusual. Consoles historically get cheaper or get a slimmer revision as they age. This cycle has gone in reverse, and shoppers have noticed. Push Square’s write-up ties the price rises partly to component costs linked to the AI boom, and to households cutting back as everyday costs climb. Those are explanations offered in that coverage, not something Sony or Microsoft has confirmed.
What it means for the next generation
If the installed base stalls, the pressure on the next round of hardware gets heavy. We have already seen leaked specs for the next Xbox framed as a power race, but a power race is a hard sell when buyers are balking at today’s price. Raw teraflops do not matter to someone who just decided the current console is too expensive.
It also explains the push toward subscriptions and cloud play, such as the recently tightened limits covered in our piece on Game Pass cloud gaming caps. Push Square reports that Sony is looking at ways to earn from players beyond the hardware itself. That sounds reasonable, but it only works if people own the hardware in the first place.
The wider tech market shows a similar mood. We reported on weaker demand for pricier iPhones only a day earlier. Price fatigue is not a gaming-only problem.
What to do if you are shopping
If you already own a console, nothing here forces an upgrade. If you are buying now, compare bundles rather than bare consoles, since retailers tend to compete with extras before they cut list price. And if your budget is tight, a good used console with a big back catalog still beats paying a premium for a model that has not dropped in price.
Bottom Line
US console demand is soft because consoles got more expensive while wallets got tighter. PlayStation is at its lowest unit sales since 2013 and Xbox at an all-time low, per Circana data relayed by its analyst. The platforms are earning more per sale, but that is not a recipe for a growing audience. The fix is the unglamorous one: lower prices or better bundles.
FAQ
How far have US PlayStation sales fallen?
Circana data shared by analyst Mat Piscatella shows PlayStation hardware unit sales down 25% year over year through August 2026, the lowest point since 2013. Xbox unit sales are down 33%, an all-time low.
Why is the average PS5 price so high?
The average selling price of a PS5 in 2026 is reported at $597, up 20% on last year. The PS5 Pro lifts that average somewhat, and price increases elsewhere in the market play a part too.
Do these figures cover the whole world?
No. They describe US retail sales tracked by Circana. Other regions can behave differently, and digital or second-hand sales are not captured the same way.
Featured image: Photo by Javier Martínez on Unsplash.
