Xbox Hits Record Low Sales as PS5 Sees Steepest May Decline

Microsoft’s Xbox recorded its weakest May hardware sales on record, while Sony’s PlayStation 5 posted its lowest May sales since 2000, according to newly released Circana market tracking data. The report reflects market performance before Microsoft’s latest Xbox hardware price increases, indicating that earlier price hikes had already weighed heavily on demand for both gaming platforms.

Nintendo’s Switch 2 continued to outperform its competitors despite broader industry challenges. The console remained the second-fastest-selling system in history behind the Game Boy Advance and recorded a 38% increase in sales compared with May 2025.

Sony’s PS5 experienced a 58% year-over-year decline in May after the company raised console prices in April 2026. Meanwhile, Xbox hardware sales fell 12% from the same month last year, marking the lowest May sales since the Xbox brand launched in 2001. Despite lower unit sales, consumer spending on Xbox hardware increased slightly because of higher console prices.

The average price of a newly purchased gaming console climbed 14% over the past year, rising from $440 to $502. Circana’s report noted that consumer demand remains strong, although it questioned how long buyers will continue to absorb repeated price increases. Microsoft has previously attributed limited console availability to supply constraints, while also acknowledging reduced production as manufacturing costs continue to rise.

According to Microsoft, component costs have increased between two and five times over the past several years, and the company expects storage costs to double again by fall 2027. As a result, Microsoft discontinued the 2TB Xbox Series X, which it suggested would have required a retail price exceeding $1,000. The standard 1TB Xbox Series X now sells for $800. Sony’s PS5 Pro currently carries a $900 price tag, although Valve’s upcoming Steam Machine is expected to become the most expensive mainstream gaming system, starting at $1,050 and exceeding $1,400 for higher-end versions despite offering performance comparable to the base PS5.

The latest data highlights ongoing pricing pressures across the console industry. Xbox appears to face the greatest challenge as declining hardware sales combine with additional price increases, while Sony has also seen a sharp drop in demand following its own price adjustments. Nintendo has so far limited its Switch 2 price increase to $50, although it remains uncertain whether the company will avoid similar cost pressures in the future.