Xbox sales tumble 33% and PS5 drops 25% as console market slumps
The story in short
The console market saw its sharpest fall in a decade, with Xbox unit sales collapsing 33% and PlayStation 5 sales slipping 25% year‑over‑year, according to October 2026 reports.
In the week ending October 11, 2026, the console market recorded its steepest drop in a decade, with Xbox unit sales falling 33% and PlayStation 5 sales slipping 25% year‑over‑year.
What we know
Tom's Hardware reported that Xbox sales contracted by 33%, the lowest level since the brand launched 25 years ago. The same source noted that PlayStation sales are down 25% YTD compared with the previous year, marking the biggest retail decline in ten years.
Push Square added that the PS5’s average selling price in the United States is hovering around $600. While the PS5 was the only console to see its dollar sales grow in Circana’s August report, overall hardware sales are still down 25% YoY, making 2026 the worst year for Sony since 2013, when the ageing PS3 hit its "lowest point since 2013".
Why it matters for gamers
The twin declines signal a market correction that could affect pricing, availability, and development focus. A higher average price for the PS5 may deter casual buyers and push them toward cheaper alternatives or next‑gen upgrades. With fewer units moving, retailers might offer deeper discounts or bundle deals, but the short‑term scarcity could also limit the supply of new accessories.
Developers watch hardware trends closely. A shrinking install base may lead some studios to prioritize cross‑platform releases or focus on PC, while others might double down on exclusive titles to revive interest. The data also hints at a possible shift in consumer confidence, especially after years of strong console sales.
What to do now
Gamers facing this uncertainty have a few practical options:
- Visit our Sony PlayStation guide to compare the PS5’s current library, performance, and upcoming price‑drop rumors.
- Check the Microsoft Xbox guide for information on the latest models, backward compatibility, and potential discount cycles.
- Consider waiting for seasonal sales or bundle offers that could lower the effective cost of a console and its accessories.
- Explore cross‑play titles that let you play with friends regardless of platform, reducing the risk of locking into a shrinking ecosystem.
Staying informed and flexible will help you navigate the volatile market and make the most of your gaming budget.
See it on Run On Console
- Sony PlayStation guide: the consoles, games and gear
- Microsoft Xbox guide: the consoles, games and gear
Sources
Verified by 2 trusted sources. This story was written from the reports below and checked against them before it was published.