Xbox price hikes trigger console sales slump, Switch 2 surges

Microsoft announced that Xbox Series X|S consoles will be more expensive starting 1 August 2026, with price increases of $100 to $150 depending on storage capacity and the discontinuation of the 2 TB model. The company blamed a sharp rise in memory‑chip costs, which have more than doubled and are expected to double again by autumn 2027.

In the same period, Sony’s PlayStation 5 sales in May fell 58 % year‑on‑year, the steepest decline since the PS 1 era, while Xbox unit sales dropped 12 %, marking the poorest monthly performance in the brand’s history. Despite higher prices, Xbox hardware revenue rose 7 % because consumers are paying more per unit.

Conversely, Nintendo’s Switch 2 achieved strong market traction, selling 5.9 million units in its first year and becoming the second‑fastest‑selling console in the United States. The success of the Switch 2 helped lift overall gaming‑hardware spending in the United States by 37 % year‑on‑year, partially offsetting the downturn for Sony and Microsoft.