May marked a significant downturn for both PlayStation and Xbox console sales in the U.S., with new data from Circana indicating a substantial drop in consumer interest following recent price adjustments. PlayStation hardware unit sales in May reached their lowest point for the month in 26 years, while Xbox hardware unit sales experienced their lowest figures ever recorded for May.

Sony implemented price increases for its PlayStation 5 consoles in April, raising the standard model to $649.99, the Digital Edition to $599.99, and the PS5 Pro to $899.99. Following these hikes, spending on PS5 consoles in the U.S. saw a year-on-year decline of 43%, with unit sales falling by 58% in May.

Microsoft's Xbox Series consoles also faced a challenging May. Although overall hardware spending for Xbox Series grew by 7% compared to the previous year, unit sales decreased by 12%. This dip in unit sales occurred despite a more modest price increase of $20-$70 implemented in October of the previous year.

The rising cost of console gaming was reflected in the average price paid for new video game hardware, which reached $502 in May, a 14% increase from $440 a year prior. The average price for a PS5 in May was $672, up 33% year-on-year, while the average price for an Xbox Series console rose 22% to $524.

These price increases are attributed to a global shortage and price crisis in memory components, often referred to as the "RAMpocalypse." Semiconductor manufacturers are reportedly prioritizing production for high-margin AI data centers, leading to increased costs for DRAM and NAND memory. Microsoft has indicated that console storage and memory prices have more than doubled and expects them to double again by the fall of 2027. The company noted that consoles are typically sold at a loss, making them particularly vulnerable to component cost fluctuations.

Sony, when announcing its price increases, cited "continued pressures in the global economic landscape." The trend of increasing console prices runs counter to the typical expectation that hardware costs decrease over a console generation. Microsoft has announced another Xbox Series price increase set to take effect in August, suggesting that further sales challenges may be on the horizon.