PS5 sales expected to decline due to generative AI memory drought and rising prices

Sony’s PlayStation 5 sales experienced a significant decline in its most recent fiscal quarter, with the company selling just 1.5 million units between January and March 2026—a 46% year-over-year drop compared to 2.8 million units sold during the same period in fiscal year 2024. For the entire fiscal year 2025, PS5 hardware sales totaled 16 million units, down from 18.5 million in the previous fiscal year.

Despite the recent slump, the PS5 has achieved substantial lifetime sales, reaching 93.7 million cumulative units sold and approaching the 100 million milestone. However, the console faces headwinds as it enters the later stages of its lifecycle—now in its sixth year on the market.

Two primary factors are driving the sales decline. First, Sony implemented multiple price increases throughout 2025, with the standard PS5 price rising from $499.99 to $649.99 in the US, with additional price hikes announced across Europe, Japan, and Southeast Asia. Second, a global memory shortage has constrained hardware production. Sony explicitly cited the surge in generative AI technology as the cause of this memory crisis, noting that it plans to base future PS5 hardware sales on the volume of memory it can procure at reasonable prices.

Despite the challenges, Sony’s gaming division remains substantial, with 85% of PlayStation game sales being digital. However, the company forecasts that annual gaming revenue will decline by 6% going forward.

Sources

• PS5 sales expected to decline due to generative AI memory drought and rising prices
• PlayStation 5 hardware sales down amid price hikes and memory shortage
• PS5 Sales Drop Almost 50%, As Sony Discusses AI Ambitions, Including New Hair Tech
• PlayStation 5 on Cusp of 100 Million Lifetime Units Sold
• Sony Ships 93.7 Million PS5 Consoles, But Recent Sales Down by Almost 50%
• Sony’s PS5 sales plummet amid price rises and a memory crisis