Starting September 1, every major gaming console will cost more than it did when it first launched. That price jump is creating real problems for Sony, Microsoft, and Nintendo, all of which are watching sales slide—not just for consoles, but for accessories and games too. The trend should worry all three companies, especially since they’re each planning even pricier hardware down the road.
July Sales Hit a Post-Pandemic Low
July was rough for console makers. According to data from analyst firm Circana, published by Bloomberg, U.S. spending on console hardware fell 29% year-over-year to $282 million. Nintendo’s Switch 2 still sold better than any other console during the month. Even so, total console sales haven’t looked this weak since the early days of the COVID pandemic, Circana reported.
Nintendo’s own earnings report, released earlier this month, showed console sales down 34.4% compared to the same period last year—even though that stretch included the Switch 2’s launch window, when sales are typically at their highest. Shoppers don’t appear to be rushing to buy a Switch 2 ahead of Nintendo’s price increase, which will push the console from $450 to $500 starting September 1.
Accessories and Games Are Taking a Hit Too
Circana’s video game division director, Mat Piscatella, noted on Bluesky that accessory spending dropped 6% compared to July 2025. Racing controller sales fell 26%, despite the popularity of new releases like Forza Horizon 6, which launched in May.
Price increases are largely to blame. Piscatella told Bloomberg that higher hardware prices tied to the ongoing RAM and component shortage have hurt PlayStation 5 and Xbox Series sales, with a Switch 2 price hike still to come. An Xbox Series X with an optical drive now costs $800—$300 more than its 2020 launch price. A PlayStation 5 with a disc drive runs $650, up from its original $500 price tag. Sony still turned a profit despite the sales dip, helped by U.S. tariff refunds. Xbox, meanwhile, is simply trying to hold steady until its next-generation console arrives.
Rising RAM Costs Are Driving the Squeeze
The gaming industry is facing a tough stretch as RAM prices climb, driven largely by demand from AI hyperscalers. Typically, at this stage in a console’s lifecycle, Xbox and PlayStation would lower prices to keep hardware selling while they prepare for their next generation. Instead, prices are rising. Even the upcoming release of Grand Theft Auto VI in November hasn’t been enough to boost hardware sales. Software sales are struggling too: content sales across all platforms, including PC and VR, fell 9% year-over-year.
What This Means for Next-Gen Consoles
The sales slump doesn’t bode well for Microsoft’s next-generation Xbox, code-named Project Helix, or for the rumored PlayStation 6. Leaks suggest both will be more powerful—and more expensive—than the current Xbox Series X and PlayStation 5. Sony CEO Horoki Totoki told The Wall Street Journal this week that the company hasn’t set a release date for either its next console or its rumored handheld device.
Xbox CEO Asha Sharma recently acknowledged the challenge, saying, “we’ve reached a point where it will be hard to imagine that mass audiences can afford thousands of dollars to spend on a console generation.” The sales numbers back her up. The real question now is what console makers plan to do about it.
