Video Game Consoles Hit 13-Year Low Due to Component Shortage

Video game console sales have collapsed by 13 percent due to an ongoing memory and component crisis, reaching a 13-year low, as reported on October 9, 2026. Analysts expect a further demand decline of 20 percent.

The cause of the collapse lies in a massive shortage of hardware components, exacerbated by high demand from crypto farms and data centers for artificial intelligence. These buyers purchase large quantities of RAM and graphics processors, driving prices up. The shortage of components led to significant price increases for PlayStation 5 and Xbox consoles over the past year.

Price Increases Weigh on Sales Figures

According to S&P, inflated prices are one of the main reasons for the expected sales decline. Price increases affected all major platforms: Microsoft raised prices for Xbox consoles, Nintendo implemented a price increase for the Switch 2 on September 1, 2026. Rising hardware prices significantly slowed sales rates for PlayStation 5 and Xbox Series X.

Sony delivered only 1.6 million PS5 units in the first quarter of fiscal year 2026 (April to June)—a 36 percent decline compared to the prior-year quarter.

Console Shortage at GTA VI Launch

Grand Theft Auto VI launches on November 19, 2026 for PlayStation 5 and Xbox Series X|S at a price of $79.99. It is the first major GTA release in 13 years—GTA V was released on September 17, 2013. The expected massive demand for the game collides with the memory chip shortage, creating a critical supply problem.

A senior buyer from the game retail sector warned in July 2026 that retailers would not receive the desired console quantities before the GTA VI launch. "Demand will likely exceed supply during the year-end period," the source told The Game Business. An industry insider made clear that not everyone who wants to play GTA VI at launch will be able to.

Microsoft may not have sufficient Xbox consoles in stock at the GTA VI release date. Low hardware inventory is likely to cost Microsoft revenue. The absence of Xbox consoles in many countries is not entirely intentional and reflects poor planning given the component shortage.

Sony Says Supply Is Adequate

Sony stated that it has sufficient memory components to meet projected sales figures for the current fiscal year through March 2027. The PS5 manufacturer signalled that there would be no console shortage during the holiday season, while players wanted to stock up on hardware for the GTA VI launch in November.

GTA VI Won't Save Console Sales

S&P identified three main factors for the expected sales decline: inflated prices, the ongoing memory shortage limiting availability, and the lack of major blockbuster releases. Despite the massive expected popularity of GTA VI, analysts concluded that the game "will not help console sales."

The combination of high prices and limited availability hits the industry at a critical moment. The component crisis has significantly impaired sales rates for both PlayStation 5 and Xbox Series X.