July Sees Record Low Console Sales in the U.S. Amid Ongoing RAM Shortage

It’s no surprise that right now, gamers in the U.S. aren’t rushing to buy new consoles.

According to a recent report on video game market sales, July 2026 marked the worst July for console sales since July 2020, a time when the COVID-19 pandemic created major logistical issues that left store shelves bare. Total hardware spending plummeted 29 percent year-over-year to $282 million, with the 2020 low hitting $163 million.

Unit sales also took a hit, dropping 39 percent year-over-year, while the average price of new hardware surged 16 percent to $542. All three major console manufacturers are feeling the pinch. Nintendo, facing tough comparisons to last July when the Switch 2 launched, saw its sales drop by 51 percent. Meanwhile, PlayStation 5 sales fell 6 percent compared to last year, and Xbox Series sales dropped 18 percent.

The report notes, “The market comparables continue to be impacted by the record-setting June 2025 launch of Nintendo Switch 2. However, the challenges extend far beyond simple cyclicality. Higher hardware prices driven by the RAM and component crisis have significantly impacted the selling rates of both PlayStation 5 and Xbox Series, with a price hike for Nintendo Switch 2 hardware coming on September 1st, 2026.”

It doesn’t look like things will improve anytime soon, especially with the impending Switch 2 price increase and the ongoing RAM shortage. Analysts are also predicting further console price hikes, leaving many to wonder if prices will ever return to normal. Optimism is in short supply.

In terms of sales, the PlayStation 5 was the top console for dollar sales, but the Switch 2 led in unit sales. Impressively, the Switch 2 is outpacing the original Switch by 11 percent in sales at the same point in their respective life cycles.

Overall, spending on games dropped 10 percent year-over-year, driven by declines in both hardware and significant drops in software spending.