"May 2026 will be the last month with hardware growth for a while. Pricing and Switch 2 launch comp will be a nasty combo." That's Circana Senior Director Mat Piscatella posting on Bluesky after the May US video game market numbers landed, and the numbers themselves make it clear why he's not optimistic.
The headline figure: Sony sold 58% fewer PS5 units in May 2026 compared to May 2025. That's not a typo. It's the fewest PlayStation consoles Sony has sold in any May since May 2000, when the original PlayStation was still the only Sony hardware on US shelves. Spending on PS5 dropped 43% year-over-year alongside that unit collapse.
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What the numbers actually say
Microsoft had a rough month too, though not quite as dramatic. Xbox Series X and Series S unit sales fell 12% year-over-year, marking the worst May performance for Xbox since the platform launched in November 2001. Here's the thing: Microsoft's hardware spending actually grew 7% despite selling fewer consoles, which points directly at price. Xbox hardware has received multiple price hikes over the past year, and the average price of Xbox hardware has risen 22% as a result.
Sony's situation is sharper. The average price of PlayStation hardware has climbed 33% year-over-year. When you push a console's average price up by a third, fewer people buy it. The math is that simple, and May's data makes it undeniable.
The Switch 2 effect and what saved the month
The broader US hardware market didn't collapse entirely, and that's almost entirely down to Nintendo. The Switch 2 has now sold an estimated 5.9 million units in North America, and its momentum carried total hardware spending up 37% between May 2025 and May 2026. When accessories and software are included, the overall market was up 3% year-over-year.
That's a significant offset. Without Switch 2 absorbing consumer spending, May's hardware picture would look considerably worse for the industry as a whole.
May wasn't short on reasons to buy a console either. 007 First Light, Forza Horizon 6, and Lego Batman: Legacy of the Dark Knight all launched during the month, giving potential buyers actual games to play on new hardware. The releases didn't move the needle enough to offset sticker shock.
Price fatigue catching up to two generations
What most players miss in hardware sales data is how long price increases take to register in consumer behavior. People absorb one price hike, maybe two, then quietly decide they'll wait. That patience appears to have run out for a significant chunk of the PS5 and Xbox audience in May.
The timing is uncomfortable for both Sony and Microsoft. PS5 is deep into its lifecycle, and Xbox Series X has struggled to build momentum throughout this generation. Neither platform can easily absorb a demand shock caused by pricing when the install base growth has already slowed.
If you're picking up a console this summer and want to get the most out of your hardware, check out our Crimson Desert best console settings guide for PS5 and Xbox Series X performance tips, or the WWE 2K26 controls guide for one of the bigger recent releases on both platforms. For survival horror fans considering a new purchase, the Hollowbody before you buy guide breaks down whether it's worth picking up on PS5 or Xbox Series X/S right now.
June's data will be the next real test. If the Switch 2 comparison effect kicks in and PS5 and Xbox pricing stays where it is, Piscatella's warning about a rough stretch ahead looks well-founded.
