Circana says US console hardware is at its weakest point since the early 1980s

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Circana's Mat Piscatella says the US console hardware market is in its most precarious position since the early 1980s, VGC reports. That is a striking claim, given the early 1980s saw the famous video game crash. From January to August 2026, Xbox unit sales were down 33% year on year, the platform's lowest ever. PlayStation units fell 25%, the lowest since 2013

Prices are a big part of the story. The average price paid for an Xbox was $529, up 26%, and for a PlayStation it was $597, up 20%. Both are all time highs in the US. Piscatella said price sensitivity is becoming a real problem

Circana blames component shortages that have pushed up prices, linking them to demand from AI data centres. We have seen the same pressure on memory, storage and graphics cards in recent weeks. Console makers have had to raise prices rather than sell at a loss. That makes consoles harder to afford for many families

There is hope on the horizon. Piscatella suggested GTA 6's November launch could ease the decline, depending on stock levels. Xbox's Matthew Ball said demand for its console exceeds supply. Retailers have warned that consoles could sell out around GTA 6's launch, and GameStop has raised its used PS5 Pro price by 55% to $1,400

I think this is more about prices than a loss of interest in games. People still love playing, as engagement and software sales show. If component costs ease and big releases like GTA 6 arrive, hardware sales could recover. The comparison with the early 1980s is dramatic, but the circumstances are very different today

Have console prices put you off buying new hardware this year? And will GTA 6 be enough to turn sales around?

Us Console Hardware Market At Its Most Precarious Position Since The 80S Says Circanawww.videogameschronicle.com