Analysts: Americans are buying consoles less frequently due to price increases
Sales of gaming consoles in the US are slipping — retail figures show a continuing decline.
Analytics firm Circana says May was particularly rough: the Xbox Series posted its worst May on record, and Sony’s platform saw its weakest May since 2000.
In raw numbers, PS5 unit sales plunged 58% year-over-year, while Xbox Series volumes fell about 12%. At the same time, total hardware revenue jumped 38% to $249 million — largely because the Nintendo Switch 2 is out front in both units sold and dollars earned. Ironically, higher revenue hasn’t translated into healthier sales across the board; analysts point to steeper prices as a key drag.
The average price for a new console in the US rose 14% over the past year, from $440 to $502 (e.g., buyers are paying noticeably more up front). Microsoft this week confirmed another round of increases: starting August 1, the Xbox Series X (1 TB) will retail for $799.99 and the Series S (512 GB) for $499.99. That leaves the flagship about $300 pricier than at launch in 2020, and the Series S roughly 50% more expensive — a likely factor in why some consumers are pausing purchases.