The home console market is facing a significant downturn. According to July 2026 data from S&P Global Market Intelligence Kagan, global console shipments are projected to fall to 33.9 million units, a 19.5% decrease year-on-year.
Component Crisis and Pricing Pressure
The decline is primarily attributed to an ongoing crisis in RAM and storage supply. To offset rising costs, manufacturers have implemented price hikes, making consoles less affordable for the average consumer. This trend reverses previous gains seen after the Nintendo Switch 2 launch, which had pushed shipments to 42.1 million units.
Sony's Struggle with PlayStation 5
Sony is particularly affected. The PlayStation 5 shipped 17.1 million units in 2025, and shipments are expected to drop further to 13.2 million in 2026. Price increases implemented in April 2026 — raising the base model to $650 and the Pro version to $900 — make a six-year-old architecture less appealing. Analyst Neil Barbour questions if the hype for Grand Theft Auto 6 will be enough to offset these costs, forecasting a potential PlayStation 6 launch only in 2028.
Nintendo and Microsoft Trends
Nintendo expects Switch 2 sales to decline by 16.9% in its second fiscal year, hampered by a $50 price increase and a lack of immediate "tentpole" software (with Pokémon Wind and Waves not arriving until late 2027). Meanwhile, Microsoft's Xbox Series X|S has hit record lows for annual shipments.
Long-term Outlook
The forecast suggests a further dip to 27.1 million units by 2027, with a gradual recovery toward 37.4 million by 2030. Recovery depends on the component crisis easing enough to allow next-gen hardware to be priced between $600 and $800. This volatility reinforces a broader shift toward PC gaming, as seen with Steam's recent record revenues.
No comments yet. Be the first!