Circana Says Hardware Market in the US is in Most 'Precarious Position Since the Early 80s'

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1. 2h ago

   US Console Market in Most Precarious Position Since Early 1980s

   The US video game hardware market has entered its most precarious state since the early 1980s, according to Circana Senior Director Mat Piscatella. Year-to-date sales through August 2026 show Xbox hardware unit sales falling 33% compared to last year, reaching an all-time low. PlayStation hardware units decreased by 25%, the lowest point for the brand since 2013. These declines are driven by record-high console prices resulting from memory and storage shortages caused by high demand for AI data center components.

   Why it matters

   High hardware costs are deterring consumers as average prices for new consoles reach record highs. This trend threatens the stability of the home console ecosystem during a period of significant supply chain pressure.

   What is confirmed

   • Mat Piscatella of Circana states the US console market is in its most precarious position since the early 1980s.
   • Xbox hardware unit sales in the US are down 33% year-to-date through August 2026.
   • PlayStation hardware unit sales in the US are down 25% year-to-date through August 2026.
   • Xbox US hardware sales have hit an all-time low.
   • PlayStation US hardware sales are at their lowest point since 2013.
   • Average US prices for new Xbox consoles from January to August 2026 were $529, a 26% increase.
   • Average US prices for PlayStation consoles from January to August 2026 were $597, a 20% increase.
   • Component scarcity driven by AI data center demand has increased console prices.

   Still unconfirmed

   • Series X prices have reached $800 and PS5 Pro prices have reached $900.
   • Hardware sales have plunged to a 13-year low.

   What to watch next

   • Quarterly financial reports from Microsoft and Sony regarding hardware margins
   • Updates on component availability for memory and storage
   • Changes in retail pricing for the Series X and PS5 Pro
   Sources used for this update (12)

   1. wccftech.com — Circana’s Mat Piscatella Warns US Console Market Is Most Precarious Since Early 1980s, As Xbox Hardware Units Crash 33%
   2. Yahoo Finance — Video game hardware sales plunge to 13-year low as prices soar on memory, storage shortage
   3. Forbes — Xbox Sales At An All-Time Low With PlayStation Its Worst In 13 Years
   4. Tom's Hardware — Console market craters as Xbox sales crash 33% to the lowest since launch 25 years ago, PS5 sales drop 25% — steep price hikes push Series X to $800 and PS5 Pro to $900
   5. VGChartz — Circana Says Hardware Market in the US is in Most 'Precarious Position Since the Early 80s'
   6. Substack — Circana: The U.S. Video Game Market in August 2026 - powered by Mellow
   7. www.gaming.net — Circana: Xbox US Unit Sales at All-Time Low, PlayStation ...
   8. cashwalklabs.io — US console hardware market at its most precarious position ‘since the 80s’, says Circana | Global Cas....
   9. www.eurogamer.net — As Xbox and PlayStation sales reach new lows, analyst says the "US hardware market has not been in a more....
   10. www.scenegamers.com — US Console Market: Weakest Since the 80s – Scene Gamers
   11. bsky.app — Mat Piscatella (@matpiscatella.bsky.social)
   12. www.gamesradar.com — US console market hasn't been "in a more precarious position ...
   confidence 100%