Xbox Sales Crash 33% as Console Hits Historic All-Time Low

Xbox hardware sales have reached a record low in the United States, with Microsoft’s console business experiencing a sharp decline in 2026. PlayStation is also struggling, as rising hardware prices and supply shortages put increasing pressure on the gaming industry.

According to Circana analyst Mat Piscatella, Xbox hardware unit sales in the US fell 33% through August 2026 compared to the same period last year. PlayStation hardware sales declined by 25% during the same period.

The figures mark the lowest year-to-date Xbox hardware sales in Circana’s US tracking history. Meanwhile, PlayStation recorded its weakest sales performance since 2013.

Piscatella warned that the US gaming hardware market is now in its most precarious position since the early 1980s, highlighting the challenges facing both major console manufacturers.

Xbox and PlayStation prices reach record highs

Declining sales come as console prices continue to climb.

The average price paid for an Xbox console in 2026 increased by 26% compared to 2025, reaching a record high.

Microsoft implemented a worldwide Xbox Series X/S price increase in August, while more recent Xbox price increases outside the US have pushed some models to significantly higher price points.

PlayStation faces similar challenges. Its average selling price increased by 20% year over year, also reaching a record high.

Sony raised PS5 prices in the US in August, while the PS5 Pro recently went out of stock following renewed interest surrounding GTA 6.

Rising component costs and ongoing supply shortages have contributed to these price increases, making console hardware less affordable for consumers.

With both Xbox and PlayStation reporting substantial sales declines, higher prices could further weaken demand.

What does this mean for Microsoft’s next Xbox?

The downturn raises questions about Microsoft’s next-generation Xbox hardware, currently known as Project Helix.

Rising component costs and supply constraints could make developing and launching a new console considerably more expensive. Microsoft would also need to balance hardware pricing against a market where consumers already appear increasingly reluctant to purchase expensive consoles.

However, the company continues to pursue its broader gaming strategy.

Xbox CEO Asha Sharma recently outlined major plans for PC gaming and Battle.net, signaling Microsoft’s continued focus on expanding its gaming ecosystem beyond traditional consoles.

Microsoft also expects Xbox to return to growth in fiscal year 2027, despite the current hardware market challenges.

For now, the latest US sales figures suggest that the biggest challenge facing the next generation of gaming consoles may not be hardware performance, but affordability.

Via Pure Xbox