US Hardware Market Said To Be Most ‘Precarious’ Since 1980s Following Xbox & PS5 Sales Slumps
The US gaming hardware market is facing its most challenging period since the early 1980s, according to analyst Mat Piscatella of Circana. Both major console manufacturers are experiencing significant sales declines in 2026. Xbox hardware unit sales have plummeted 33% compared to the same period in 2025, while PlayStation console sales have fallen 25% year-over-year through August.
These dramatic figures underscore growing industry concerns about hardware demand and the overall health of the gaming market. The severity of the decline—particularly Xbox’s near-one-third drop—suggests consumers are either delaying purchases, migrating to alternative platforms, or reducing their spending on gaming hardware entirely. The situation reflects broader economic pressures and potential market saturation after several years into the current console generation.
This represents one of the most precarious situations the gaming hardware industry has faced in decades, raising significant questions about the viability of current console strategies and manufacturers’ ability to stimulate hardware demand going forward.