PS5 and Xbox See Weakest May Sales as Switch 2 Leads

PlayStation 5 (PS5) and Xbox recorded their weakest May hardware sales in the U.S., according to Circana's latest market report. The decline came as rising console prices continued to affect consumer demand. Despite the slowdown for Sony and Microsoft, overall U.S. hardware spending increased 38% year-over-year (YoY) to $249 million USD.

However, the Nintendo Switch 2 drove much of that growth, remaining the country's best-selling console.

The latest figures come as console makers continue to grapple with RAM, rising memory, and storage costs. Sony and Microsoft have already raised hardware prices. Nintendo will also increase the Nintendo Switch 2's U.S. price on Sep 1, 2026, ending its advantage as the only current-generation console to avoid a price hike.

PS5 and Xbox Hardware Sales Fall Despite Higher Consumer Spending

According to the report, total U.S. video game spending reached $4.2B in May 2026, up 3% from a year earlier, while year-to-date spending rose 4% to $23B. Content spending increased 1% to $3.8B, and accessories spending climbed 8% to $168M.

Hardware spending, however, was driven almost entirely by Nintendo Switch 2. Circana's Mat Piscatella stated the platform "offset a 43% drop in PlayStation 5 spending" during the month. PS5 spending declined 43% YoY, while unit sales dropped 58%, marking the platform's lowest May hardware sales since 2000.

Meanwhile, Xbox hardware spending increased 7%, but unit sales still fell 12%, making it the brand's weakest May on record.

Consumers also paid significantly more for new consoles. The average selling price of video game hardware reached $502 in May, up 14% from $440 a year ago. Average PS5 pricing increased 33% to $672, while Xbox Series consoles averaged $524, up 22%.

Rising Hardware Costs Reshape the Console Market

Sony's latest price increases have pushed the PS5 Pro to $899.99 from $749.99, while the standard PS5 Disc Edition now costs $649.99 instead of its original $549.99.

Microsoft will introduce another worldwide price increase on August 1, 2026, raising the Xbox Series X 1TB from its $499.99 launch price to $799.99. The Xbox Series S will also increase to $499.99 for the 512GB model and $599.99 for the 1TB version.

Explaining the decision, Microsoft noted it had worked with suppliers to avoid another increase, but "console storage and memory prices have increased by more than 2.5x." The company further announced expanded Buy Now, Pay Later, trade-in, 0% financing, and certified refurbished programs to improve hardware affordability.

Meanwhile, the Nintendo Switch 2 remained the best-selling hardware platform by both units and revenue in May and for the 2026 year-to-date. The console reached a 5.9M unit installed base in the U.S. during its first year, as reported by Circana. That made it the second fastest-selling video game hardware platform in tracked U.S. history behind the Game Boy Advance.

Nintendo is expected to increase the Switch 2's Manufacturer's Suggested Retail Price (MSRP) from $449.99 to $499.99 on Sept 1, 2026. Once the change takes effect, all three major console manufacturers will be selling hardware at higher prices.