The US console market delivered a sobering set of numbers for Sony and Microsoft in May 2026, with both platforms recording their weakest May unit sales in over two decades. New data from market research firm Circana shows PlayStation and Xbox hardware pulling historic lows even as overall video game spending nudged upward — carried almost entirely by Nintendo's Switch 2.
PlayStation's Worst May Since the PS1 Era
PS5 unit sales fell 58% compared to May 2025, while dollar spending on the platform dropped 43% year-over-year. That makes it the fewest PlayStation consoles Sony has sold in any May since 2000, back when the original PlayStation was the company's only console on US shelves. Circana points to pricing as a key factor: the average selling price of PlayStation hardware has climbed 33% over the past year, pushing the platform into premium territory and appearing to suppress demand at scale.
Xbox Records Its Worst May on the Books
Microsoft's position is arguably bleaker in historical terms. Xbox hardware units fell 12% between May 2025 and May 2026, the brand's worst May performance since Xbox first launched in November 2001. Yet Microsoft still saw hardware spending grow 7% year-over-year — a contradiction explained by the same pricing dynamic, with the average price of Xbox hardware up 22% over the year following repeated console price hikes.
Switch 2 Offsets the Damage
Nintendo's Switch 2 remains the bright spot propping up the broader US market. Circana estimates the console has sold roughly 5.9 million units in North America, and its continued momentum is what offset the steep PS5 and Xbox declines. Without it, the month's hardware picture would have looked considerably worse.
Spending Up, Units Down
Despite the unit drops, the overall market still grew. Hardware spending rose sharply year-over-year in May — up around 37% — and total spending across hardware, software, and accessories climbed 3% compared to the same month in 2025, even with high-profile releases like 007 First Light, Forza Horizon 6, and Lego Batman: Legacy of the Dark Knight arriving during the window. The pattern points to a market where higher prices are inflating revenue even as fewer consoles change hands, a dynamic Circana's Mat Piscatella expects to catch up with the industry soon. The May data makes plain that Sony and Microsoft are navigating a difficult stretch: platform price increases are padding per-unit revenue while simultaneously depressing the attach numbers that drive long-term software and services income. With Switch 2 continuing to outperform across every measurable metric, the pressure on both companies to either cut prices or deliver hardware refresh cycles capable of reigniting consumer interest has rarely looked more acute.
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