Console sales aren't looking too hot right now, at least going by numbers from the good ol' US of A. According to analyst figures, the amount shifted in July 2026 reached a low for the month not seen since 2020 – ooft.
These numbers come from Mat Piscatella, senior director and video game business advisor at Circana, who did his usual monthly round-up of industry figures. Circana's data indicates the overall spending on hardware took another hit, bringing numbers comparable to those of six years ago, as he writes: "Hardware spending fell to a July low not seen since 2020."
The boom of the Nintendo Switch 2 around this time last year contributed to the downturn – it's hard to beat a big system launch – but Piscatella points out, "the challenges extend far beyond simple cyclicality." Parts are hard to get a hold of, driving up prices, particularly when it comes to RAM, since data centers are just absorbing so much of the supply.
The hardware market comparables continue to be impacted by the record-setting June 2025 launch of Nintendo Switch 2. However, the challenges extend far beyond simple cyclicality.
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"Higher hardware prices driven by the RAM and component crisis have significantly impacted the selling rates of both PlayStation 5 and Xbox Series, with a price hike for Nintendo Switch 2 hardware coming on September 1, 2026," Piscatella writes on Bluesky.
This is all in line with what manufacturers themselves have been saying. Xbox lost around $1.6 billion over the last financial year, and Sony says the PS5 is lagging way behind the PS4 at the same point in its lifespan.
There's a 39% drop in hardware sales overall compared to last July, and the average price of a system is up 16%. Right now, the highest-end PS5 model will run you $899.99. That's a lot of money, and the cheapest version is $599.99, which isn't all that much better. It's difficult to justify the investment for many people amid other economic concerns.
That said, GTA 6 is now right around the corner, and there'll definitely be movement on consoles for the Christmas period and into next year as a result. But how much, and what it'll do to help their makers get back on solid ground, are other questions.
