Black August: US console sales hit their worst month in 13 years

According to Circana data shared by analyst Mat Piscatella and reported by GameSpot, the US video game hardware market has just posted its worst August in 13 years. A total of 559,000 consoles were sold, down 15% from the same month last year. To find a lower figure, you have to go back to 2013, when 423,000 units were sold. None of the big three escaped the slump: PlayStation fell 11%, Nintendo 15%, and Xbox plummeted 31%, its worst August since 2020.

Why should you care if your thing is competing or creating content? Because this is about more than sales: it shows how expensive it has become just to get in the game. The average console price rose from $476 in 2025 to $541 in 2026. Fewer machines are being sold, but each one costs more. That affects who can join a competitive scene, which platform the community gravitates toward, and where creators should focus their efforts.

What you need to know

• 559,000 consoles sold in the US in August: down 15% year over year and the worst August since 2013.
• Xbox took the hardest hit, dropping 31% for its weakest August since 2020. PlayStation fell 11% and Nintendo 15%.
• The average price climbed from $476 to $541: fewer units are being sold, but each one brings in more revenue.
• Prices are at all-time highs due to global pressure on component costs and mid-generation models like the $900 PS5 Pro.
• The price hikes in early 2026 triggered early purchases, and that demand is now missing from the months that followed.

Why the market has stalled

Traditionally, by this point in a generation, consoles would drop in price and players who had been holding out would finally buy in. This cycle is running in reverse. Component costs have pushed prices up, and upgraded models like the PS5 Pro, which costs $900, raise the average even further. In practice, the barrier to entry is far higher than in previous generations, and many people simply aren't taking the plunge.

On top of that, there's natural market fatigue. The PS5 and Xbox Series X|S have now been on the market for six years, and most people who wanted one probably already have it. Finally, there's the rebound effect: when the price increases were announced in early 2026, many players rushed to buy before they took effect. Those purchases were concentrated in just a few months, leaving a gap that is now showing up in figures like August's.

Xbox, the most worrying case

Every platform is down, but Xbox's drop is more than double PlayStation's. A 31% decline in a single year can't be explained by price or market saturation alone. It reflects a brand that is losing ground to its rivals in hardware right as the market is shrinking.

Our take

Here at the Underworld Lordz newsroom, we see it clearly: the industry has decided it's better to sell less at higher prices, and that has consequences. For manufacturers, higher revenue per unit might seem like a consolation. For the competitive community, it's bad news. Every player who can't afford a console is one fewer player in ranked queues, amateur tournaments, and team academies. Scenes grow from the ground up, and today the first step costs more than ever.

This also reinforces a trend we've already been noticing: PC and more accessible platforms are becoming the main gateway into competitive play. If you're a content creator, keep that in mind. Betting everything on a single console, especially one that's losing ground, is riskier than it was a few years ago. Multiplatform content and games with crossplay make more sense now than ever.

That said, there's no need to be overly dramatic. Part of the slump is due to early purchases and will likely correct itself to some extent. But if prices don't come down, the underlying problem will remain: a hobby that's becoming more exclusive just when it most needs to bring in new people.

What do you think?

Have you held off on upgrading your console because of the prices? Do you think the future of competitive gaming lies with PC, or will consoles win back ground when the next generation arrives? Would you pay $900 for a Pro model if it gave you an in-game edge? Come discuss it in the team chat or on our Discord: is it worth buying a console today, or is it better to wait?