PS5 price increase caused console sales to surge, as Switch 2 could benefit next

In its annual fiscal report, Sony revealed that console sales dropped by 46% in Q4 compared to the previous year. The PS5 price increase will likely contribute to further declines in gaming revenue. However, before the changes went into effect, buyers flocked to the system. The soon-to-be-more-expensive Switch 2 could experience the same brief boost in popularity.

March may have reversed a troubling trend

Circana analyst Matt Piscatella appeared on The Game Business Show for an interview with Christopher Dring. He commented on how U.S. consumers reacted to rising MSRPs for PlayStation consoles. According to Piscatella:

It had the biggest week of the year, the week the announcement came out, and then subsequently had its two lowest weeks of performance since.

On April 2nd, the PS5 price increases included $100-150 jumps on the digital, disc, and pro models. Those elevated costs convinced buyers to secure the hardware at their existing prices. Combined with impressive game sales, Piscatella believes March was a stronger month for gaming revenue than seen in 2025.

The analyst warned viewers not to draw conclusions from only several weeks of data. Despite the steeper PS5 prices, PlayStation console sales could stabilize in the months to come. The GTA 6 release date also looms in November, with the Rockstar Games title promising to be a system seller. That said, Piscatella says that many casual gamers may be surprised by the added financial burden.

An industry-wide dilemma

Microsoft saw a similar pattern with the Xbox Series X|S after repeated price hikes. More recently, the Switch 2 price increase sparked chaos, with Japanese buyers crowding retailers. U.S. buyers have more time to prepare for the $50 adjustment on September 1st. Regardless, Nintendo projects that it will sell 16.5 million handhelds in the current fiscal year, down from 19.9 million in FY 2025.

Unfortunately, gaming systems are unlikely to become more affordable again in the near future. The storage and memory shortage threatens the PS5 and its rivals with long-term impacts. Even the upcoming Valve Steam Machine isn't immune from the crisis.