PS5 and Xbox Collection X/S consoles are costlier than ever in most markets, thanks largely to reminiscence parts being wolfed up by AI information centres. Now, analyst Mat Piscatella worries the console market, not less than within the US, hasn’t appeared this dire for the reason that early Nineteen Eighties, which was possibly not-so-coincidentally when the business completely collapsed.
Circana’s Piscatella not too long ago jumped on-line to disclose that Xbox and PS5 value hikes brought about a giant blow to gross sales, considerably unsurprisingly. Xbox {hardware} gross sales are reportedly down 33% “versus a yr in the past within the US, whereas PlayStation {hardware} items are 25% decrease.” These year-to-date stats mark a brand new all-time low for Xbox, and PlayStation’s lowest level since 2013.
“The typical value a client has paid for a brand new Xbox console in 2026 YTD ending August is $529, 26% increased than a yr in the past, whereas the common PlayStation console has bought for $597, 20% increased than final yr,” Piscatella added. “Each costs are at all-time US highs. Worth sensitivity is turning into an actual downside.”
There’s been some hope the incoming and meteoric launch of GTA 6 subsequent month may give each consoles a lift, and Piscatella additionally famous that Rockstar’s mammoth may “assist ease not less than a few of these declines,” however that is all depending on pricing and “product availability.” If all of the RAM is booked for AI information centres, Microsoft and Sony will not be capable to make as many consoles as they’ll promote.
“The US {hardware} market has not been in a extra precarious place for the reason that early 80s,” Piscatella added.
Consoles aren’t the one gadgets affected by RAMaggedon, although. Nearly each client digital machine has been topic to cost will increase the previous few years. The PS5, Change 2 and Xbox Collection X/S value tags have all been bumped up, typically a number of occasions, as properly.
Micron’s CEO not too long ago warned that reminiscence shortages are set to persist till not less than 2028. Xbox boss Asha Sharma additionally delivered an identical notice months earlier: “After I joined as CEO in February, the worth we paid for console storage parts was over 2x as excessive as we paid final fall. These prices have since doubled once more. And as we plan for the 2027 vacation season, we anticipate one other important improve, taking us over 5x the costs we paid solely two years earlier.”