Surging memory, RAM, and storage costs are reshaping the video game console market, driving a fresh wave of price increases across all three major platform holders. Sony and Microsoft have already adjusted their hardware pricing upward, and Nintendo is now preparing to follow suit with its Switch 2 in September.
Hardware Spending Climbs Despite Falling Unit Sales
According to new data from Circana, the average price paid for a new video game hardware unit reached $502 in May, a 14 percent jump from $440 in the same month a year ago. In May 2026, the average selling price of a PlayStation 5 rose 33 percent year-over-year to $672, while the Xbox Series family saw a 22 percent increase to an average of $524.
Total U.S. spending on video game hardware climbed 38 percent in 2026 to $249 million. That growth was fueled almost entirely by the Nintendo Switch 2, which has moved 5.9 million units in the country without undergoing a price increase. In sharp contrast, PS5 hardware spending contracted by 43 percent and unit sales fell 58 percent. Xbox hardware spending edged up 7 percent, yet unit sales slid 12 percent, marking the weakest sales month ever for the platform.
New Console Price Tags Reflect Persistent Supply Pressure
Ongoing global supply pressures have pushed the PS5 Pro to $899.99, up from $749.99, while standard disc editions of the PS5 now sell for $649.99, up from $549.99. Microsoft’s lineup is also seeing substantial markups. The Xbox Series X 1TB Edition, originally launched at $499.99 in 2020, will reach $799.99 with its third round of price increases scheduled for August 1, 2026—a $300 premium over its original MSRP. The more budget-oriented Xbox Series S, which debuted at $299.99, will rise to $499.99 for the 512GB variant and $599.99 for the 1TB model in August.
Switch 2 Adjusts Pricing While Leading the Market
Nintendo’s Switch 2 has so far resisted the pricing pressure that has affected its competitors, a key reason it continues to dominate U.S. hardware sales. That will change on September 1, 2026, when the console’s MSRP increases by $50, moving from $449.99 to $499.99. The adjustment still leaves it well below the average selling prices of current-generation machines from Sony and Microsoft, but signals that even the market leader is not immune to the component cost crunch shaping the industry.
Rising hardware prices, combined with the widespread availability of Xbox titles on PC and through Xbox Cloud Gaming, contributed to historically low May unit sales for both the PS5 and Xbox platforms. As the gap between console generations blurs and costs climb, the industry faces mounting pressure to demonstrate value beyond raw hardware specifications.
Sources: bsky.app, news.xbox.com