US Video Game Hardware Sales Just Had Their Worst August In 13 Years
Video game hardware sales in the United States experienced their worst August in over a decade, according to market research firm Circana. Hardware sales fell 15% year-over-year to 559,000 units in August 2026, marking the lowest August total since 2013. All three major console manufacturers saw declines: PlayStation sales dropped 11%, Nintendo dropped 15%, and Xbox saw the steepest decline at 31%—the worst August for that platform since 2020.
Despite the unit decline, average hardware prices increased significantly from $476 in 2025 to $541 in 2026, meaning consumers paid more for fewer machines. This price increase reflects global component supply pressures and mid-generation hardware upgrades across the console market.
The broader video game market showed mixed results. Overall spending fell 9% year-over-year to $4.26 billion, down $407 million from August 2025. Hardware spending specifically declined 3% to $302 million. Mobile gaming was hit hardest, with spending falling 18%, while console spending also declined 7%. However, PC gaming bucked the trend with a 7% increase in spending, and subscription services grew 3%, suggesting players are shifting toward digital and alternative platforms.
The decline reflects industry-wide challenges including historically elevated console prices and ongoing component supply constraints. While the hardware numbers are concerning for manufacturers, the continued multi-billion dollar monthly market and growth in PC and subscription sectors indicate the video game industry remains resilient despite the hardware downturn.