PS5 and Xbox hit record-low U.S. sales amid console price hikes, Switch 2 emerges stronger

Due to the increasing demand for memory chips, RAM, and storage, the video game console market has also been feeling the pinch, with prices increasing across the board among the big three players in the industry. Sony and Microsoft have already raised console prices, while Nintendo is expected to raise the price of the Nintendo Switch 2 around September.

The rising cost of consoles, including the PS5, and the fact that Xbox games are playable on PC or via Xbox Cloud Gaming have led to the worst U.S. sales month ever for both companies.

A delayed price cut win for Nintendo

Xbox had its worst May in terms of hardware units sold, while PS5 console sales also dropped dramatically compared to the previous year. Since the Nintendo Switch 2 has not seen a price increase, it continues to dominate sales in the U.S.

According to Circana’s report: “The average price paid for a new unit of video game hardware reached $502 in May, which is 14% higher compared to a year ago ($440). In May 2026, PlayStation 5 average pricing increased by 33% versus a year ago to $672, with Xbox Series up 22% to $524.”

According to Circana’s Matt Piscatella, overall spending on video game hardware has risen by 38% in 2026, to $249 million, largely due to the Nintendo Switch 2’s strong sales performance, with 5.9 million units sold in the U.S. Meanwhile, PS5 spending fell by 43%, and units dropped 58%, while Xbox hardware spending grew 7% compared to the previous year. Still, unit sales were down 12%, marking its weakest historical sales month.

Price increases for everyone

Due to ongoing global supply pressures, the PS5 Pro now costs $899.99, up from $749.99, while standard PS5 disc editions now cost $649.99, up from $549.99.

The Xbox Series X 1TB Edition initially launched for $499.99, and with its third wave of price hikes slated for August 1, 2026, it will cost $799.99, representing a $300 markup over its 2020 MSRP.

Meanwhile, the Xbox Series S launched in 2020 at an MSRP of $299.99, making it Microsoft’s best budget-friendly next-gen console. It will cost a staggering $499.99 for the 512GB variant and $599.99 for the 1TB variant this coming August.

In other news, the Nintendo Switch 2’s price will be adjusted by $50, increasing from its launch MSRP of $449.99 to $499.99. This price adjustment will take effect on September 1, 2026.