Bottom line: The US console market is slowing, and more expensive hardware is making it harder to attract buyers. Consumers bought 559,000 consoles in August, down 15% from a year earlier and the lowest August total since 2013, according to figures shared by Circana's Mat Piscatella. The average selling price rose from $476 in 2025 to $541 in 2026.

For manufacturers, those higher prices can soften the financial impact of falling sales. Sony's PlayStation hardware revenue increased 17% year over year, even though unit sales declined 11%. Higher-tier models helped make up the difference.

But the figures also show the limits of mid-generation upgrades. More expensive machines allow manufacturers to generate additional revenue without necessarily expanding the audience for their hardware.

Console prices are at historical highs, driven by pressure on component costs and the introduction of premium models such as the $900 PS5 Pro. That leaves buyers facing a higher cost of entry than in previous console cycles.

The slowdown extends across all three major manufacturers. Xbox unit sales fell 31% year over year, reaching their lowest August level since 2020. Nintendo unit sales declined 15% from August 2025.

The average price a consumer has paid for a new Xbox console in 2026 YTD ending August is $529, 26% higher than a year ago, while the average PlayStation console has sold for $597, 20% higher than last year. Both prices are at all-time US highs. Price sensitivity is becoming a real problem.

The PS5 and Xbox Series X|S are roughly six years into their generation, and market saturation is likely contributing to weaker demand.

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