Console sales fall further behind last generation, as PS5 and Xbox struggle with higher prices
There is more evidence that the console market is contracting, with the PS5 and Xbox Series X|S seeing slower adoption. Ampere data projects that by the end of 2026, console sales will trail the previous generation by 20 million units. The Game Business highlighted factors like increased prices and PCs gaining more multi-platform titles.
Much of the information used in the analysis comes from Circana U.S. data. Still, several trends have also been observed by global studies. In one shift, console owners are becoming an older demographic. The average age of these gamers in 2024 was 27.9, representing a nearly four-year increase from 2018.
According to Ampere, the rising Xbox and PS5 prices are leading to fewer console sales among younger buyers. Meanwhile, mature consumers are holding onto their systems but are reluctant to make new purchases. More so than during the reign of the PS4 and Xbox One, novice gamers are turning to smartphones as an affordable alternative.
How PC gaming is faring in challenging economic times
Other reports suggest that PC gaming may be benefiting from more expensive consoles. Discussed by PC Gamer, the Epyllion investment strategy firm revealed how revenue from desktop and laptop gaming is growing at a faster pace. With more Xbox and PlayStation-exclusive games accessible, there is less reason to own other machines.
It would be easy to blame lagging Xbox hardware for the decline in console performance. However, even without Microsoft in the equation, retailers are selling fewer units. On the other hand, with steeper MSRPs, overall revenue surpasses that of past generations. The extent to which manufacturers can continue to profit from console sales at a dwindling sales pace is uncertain.
Sony and Microsoft may face a stagnant market, at least until the PS6 or a new Xbox system arrives. Still, the Circana data doesn’t yet fully account for the record-setting debut of the Nintendo Switch 2. If GTA 6 releases in the near future, its popularity could also convince buyers to make pricey purchases.
