This generation of the video game industry has seen a lot of ups and downs. There have been some great games, but layoffs and studio closures are becoming a norm. And, as the generation has gone on, the price of the video game industry has gone up too. As Circana’s Mat Piscatella notes, it seems like the rise in price is starting to affect the video game market.
August 2026 U.S. Video Game Market Highlights Thread from Circana – US video game projected total spending across content, hardware and accessories dipped 9% in August when compared to a year ago, to $4.3 billion.
— Mat Piscatella (@matpiscatella.bsky.social) October 8, 2026 at 6:00 AM
Total spending across content, hardware, and accessories fell 9% compared to a year ago. Hardware spending fell 3% to $302 million. Total content spending declined 10% compared to a year ago. Year-to-date content spending through August trailed 2025 by 2%, at $32.2 billion.
From Circana’s US Retail Tracking Service:
For 2026 YTD ending August, Xbox hardware unit sales are down 33% versus a year ago in the US, while PlayStation hardware units are 25% lower.
Xbox YTD US hardware unit sales are at an all-time low, while PlayStation is at lowest point since 2013.
— Mat Piscatella (@matpiscatella.bsky.social) October 9, 2026 at 7:00 AM
The average price a consumer has paid for a new Xbox console in 2026 YTD ending August is $529, 26% higher than a year ago, while the average PlayStation console has sold for $597, 20% higher than last year.
Both prices are at all-time US highs.
Price sensitivity is becoming a real problem.
— Mat Piscatella (@matpiscatella.bsky.social) October 9, 2026 at 7:02 AM
Nintendo Switch 2 led the US hardware market once again for both the month of August and 2026. PlayStation 5 was second. PlayStation 5 hardware unit sales fell 11% during August compared to a year ago. It’s PlayStation’s lowest point since 2013. XBOX’s hardware unit sales declined by 31% marking an all-time low in the US.
Perhaps the release of the Big Video Game in November will help ease at least some of these declines.
But this will also depend on product availability given the RAM and component crisis. And pricing, of course.
The US hardware market has not been in a more precarious position since the early 80s.
— Mat Piscatella (@matpiscatella.bsky.social) October 9, 2026 at 7:04 AM
Talking about pricing, Piscatella noted that the average paid for a new unit of video game hardware in the US reached an August record $541. The record previously was $476, set a year ago.
August 2026 U.S. Projected Top 10 Best-Selling Games Ranked on Physical & Full Game Digital Dollar Sales (Excludes Mobile and Digital Add-On Content)
— Mat Piscatella (@matpiscatella.bsky.social) October 8, 2026 at 6:00 AM
