PS5 and Xbox hit historic sales lows while gamers spend more than ever
May 2026 was the worst month for console hardware sales in a generation. PS5 unit sales dropped 58% year-over-year — the platform's lowest May since May 2000 — while Xbox Series X|S posted its worst-ever May on record, down 12%, per VGC. The culprit is straightforward: prices have climbed sharply, and buyers are pushing back.
The price problem
Sony raised PS5 prices in April, pushing the standard disc model to $649 and the PS5 Pro to $899. According to Circana analyst Mat Piscatella, that increase landed immediately in the sales data — spending on PS5 hardware fell 43% despite the higher price tags. Microsoft's situation is worse. After two Xbox price hikes in 2025, the brand is now facing its bleakest sales month ever, and another $100–150 increase is set for August 1, reports VGC.
The underlying driver is a semiconductor shortage specific to memory and storage. Microsoft has stated that console storage and memory prices have risen by more than 2.5 times, with costs potentially doubling again by fall 2027. AI data centers are absorbing the bulk of global DRAM supply, and consoles are caught in the crossfire, explains Gadget Review.
Switch 2 stands apart
Nintendo is the clear outlier. Switch 2 hardware spending rose 38% year-over-year in May, boosted by the console's first full year on the market — it has now sold 5.9 million units in the US alone. Unofficial estimates put May sales at around 270,000 Switch 2 units, versus roughly 90,000 PS5s and 60,000 Xbox Series consoles. Nintendo has announced a US price increase from September 1, so these figures will face tougher comparisons soon.
Games are selling fine
Hardware misery hasn't touched software. Console game spending rose 25% year-over-year in May, per GameSpot. James Bond title 007 First Light topped the monthly chart with the biggest launch month in franchise history. Forza Horizon 6, LEGO Batman: Legacy of the Dark Knight, and Subnautica 2 all posted strong numbers too.
Piscatella's outlook for the next few months is cautious. Demand for consoles hasn't evaporated — but at these price points, many buyers are waiting. Some analysts believe GTA VI's release could actually trigger a console shortage, particularly for PS5, as demand floods back in a compressed window. For now, the gap between what people will pay for a box and what they'll spend on games has never been wider.
