US console sales crash 39% in July as memory crisis pushes average price to $542

Spending on physical game discs has fallen to the lowest level on record since tracking began in 1995, as a new report reveals a sharp downturn in the console market. U.S. console hardware sales dropped 39% by unit volume in July compared to the same month last year, while the average price paid for a new system rose 16% to $542, according to Circana data published by analyst Mat Piscatella on August 20.

Dollar sales reached $282 million, down 29% year-over-year and marking the lowest July total since 2020. Piscatella directly linked the slump to console price increases driven by the RAM and component crisis—a connection Circana had not previously made in its monthly reporting. The price hikes have been particularly severe for memory components, which are essential for modern gaming hardware.

Breaking down the numbers, PlayStation 5 unit sales fell 6%, Xbox Series units dropped 18%, and Switch units plunged 51%. However, PS5 dollar sales surged 29% even as unit sales declined, fueled by Sony's $100 price increase across the PS5 lineup in April. The standard PS5 now costs $599, while the PS5 Pro is priced at $899. Sony still led the month in dollar sales, while Nintendo led in unit volume.

Switch dollar sales fell 52% alongside the 51% unit decline, and the original Switch dropped 62% in units and 61% in dollars. Nintendo's Switch is the only one of the three current platforms that has not raised its U.S. price yet, but that will change when the console goes to $499 on September 1. The company has cited rising RAM costs as the primary reason for the increase, which will affect all new purchases starting next month.

The report underscores a broader trend: consumers are spending less on physical media and facing higher hardware costs, with memory shortages continuing to pressure manufacturers across the industry.