Winners & losers: Everyone likely knew that the damage to unit sales from recent PlayStation and Xbox price hikes would be painful, but recent US market data indicates that last month was the worst May in 25 years for the two brands. Ironically, price increases, including those that came with the Nintendo Switch 2, actually led to an overall increase in spending.
Market research firm Circana's Mat Piscatella reports that May 2026 saw the lowest number of PlayStation consoles sold in the United States during any May since 2000, a few months before the PlayStation 2's launch. Meanwhile, Xbox unit sales experienced their worst May on record.
Sony and Microsoft recently introduced sharp price hikes for the PlayStation 5 and Xbox Series S|X due to rising memory costs. Sony raised prices for PS5 models globally by between $100 and $150 in March, bringing the new standard price to $549 and an unprecedented $899 for the PlayStation 5 Pro. The result was a May sales decline of 58% year-over-year and a 43% drop in dollar spending. Likewise, Xbox consoles saw two hikes last year, which collectively brought them close to Sony's current prices. However, Xbox is expected to face a third price hike in August – reportedly the steepest yet – which would raise prices by another $100 to $150.
Hardware - PlayStation hardware unit sales fell to their lowest May total since May 2000, while Xbox hardware unit sales were the lowest ever recorded for a May month.
– Mat Piscatella (@matpiscatella.bsky.social) June 26, 2026 at 9:00 AM
Costs are expected to continue rising across the consumer hardware market as AI data center construction disrupts the RAM and storage markets. Experts do not expect the situation to improve before 2028, and memory manufacturer Micron recently froze its contract prices for another five years.
Ironically, while Xbox unit sales decreased by 12% annually in May, higher prices actually increased spending by 7%. In fact, overall hardware spending rose by 38%, as the Nintendo Switch 2, which delayed a mere $50 price hike until September, covered for its rivals.
May 2026 closes out the Switch 2's first year on the market with an approximate total of 5.9 million units sold. The handheld console is the second-fastest-selling portable gaming system in the US since records began in 1995, behind only the Game Boy Advance, which sold 6.5 million units in its first year.
Piscatella predicts that May 2026 may mark the last annual increase in hardware sales for some time, as additional price hikes could discourage consumers from purchasing consoles until the holiday season, when Grand Theft Auto VI could significantly boost demand and strain supply.