Xbox Hits All-Time Sales Low, PlayStation Lowest Since 2000
▼ Summary
– Nintendo Switch 2 is the second-fastest-selling console ever and saw a 38% sales increase in May 2025, remaining unaffected by price hikes.
– PS5 sales dropped 58% from last May after its April 2026 price hike, hitting the lowest May sales since 2000.
– Xbox had its lowest May sales ever, down 12% from last year, with spending slightly up due to cost increases offsetting declines.
– The average new console price rose 14% from last May to $502, with component costs increasing 2x to 5x and storage costs expected to double by fall 2027.
– Microsoft discontinued the 2TB Xbox Series X due to high costs, with the 1TB model now $800, and PS5 Pro at $900, while Valve’s Steam Machine starts at $1,050.
Before the latest round of Xbox hardware price hikes was even announced, two earlier increases had already put both Microsoft and Sony in a tough spot, according to new tracking data from Circana. The Nintendo Switch 2, by contrast, remains untouched by such pressures and is still the second-fastest-selling console of all time, trailing only the Game Boy Advance, with sales up 38% compared to May 2025.
Sony’s PlayStation 5 has taken a major hit, with sales plunging 58% from last May following its April 2026 price increase. That made May 2026 the worst May for PlayStation hardware sales since the year 2000. Meanwhile, Xbox just recorded its lowest May sales ever, though it’s worth noting the system only launched in 2001, after Sony had already entered the market. Xbox sales dropped just 12% year-over-year, but total spending on the platform actually edged up slightly as price increases helped offset volume declines. All of this, however, predates the newly announced $100 to $150 price increases on every Xbox model.
The average price for a new console has jumped 14% from last May, now sitting at $502 compared to $440. Circana’s data indicates strong consumer demand remains, but analysts question how long that can last given the relentless price hikes. Microsoft blames supply constraints for its inability to meet demand, but the real issue is that it is producing far fewer consoles due to skyrocketing production costs. Component prices have risen anywhere from 2x to 5x across the industry over the past few years, and Microsoft warns that storage costs will double again by fall 2027, with no relief in sight.
The situation has grown so severe that Microsoft discontinued its 2TB Xbox Series X entirely, as that model would likely have needed a price tag exceeding $1,000. The 1TB Series X now retails for $800. Sony’s PS5 Pro is currently the most expensive console on the market at $900, though that will soon be eclipsed by Valve’s long-awaited Steam Machine, which starts at $1,050 and climbs past $1,400 for higher-end configurations. Notably, those higher-end models offer only the same power as a base PS5.
The core problem is that this doesn’t appear to be a temporary crisis. Xbox is in the most precarious position: its already dismal sales, hammered by unavoidable price increases, are now being crushed further. Sony is also spiraling quickly, and there’s no guarantee it won’t be forced into a third round of price hikes. Nintendo, for now, has managed with just a $50 increase for the Switch 2. Nintendo is Nintendo, after all, but even it may eventually feel the weight of these market pressures.
(Source: Forbes)
