Abstract:
The global shortage of memory and storage chips is dealing a heavy blow to the gaming industry. Microsoft, Nintendo and Sony have all raised the prices of their own game consoles to offset rising component costs and the impact of previous tariffs. The price increase directly caused a sharp decline in sales. According to data from market research firm Circana, gaming hardware sales fell 15% year-on-year in August, hitting the lowest August sales in 13 years.
Take Sony's PlayStation 5 as an example: the digital version of the console without an optical drive will be priced at US$399 in November 2020; the version with an optical drive will be priced at US$499. The more powerful PS5 Pro will cost $699 when it debuts in 2024, and is now priced even higher.
Microsoft's Xbox Series S and Series X have also adopted a similar price increase strategy. The Series S will initially cost $299.
Affected by President Trump’s “Liberation Day” tariff imposition policy last year, Nintendo also raised the price of the Switch 2 console.
June 25, 2026 On the same day, the pre-order page for "Grand Theft Auto 6" was displayed on the TV screen, with a PS5 controller placed in front of the screen.
Circana data pointed out that consumer spending on gaming hardware fell 3% in August, and cumulative spending this year fell 11% year-on-year.
"We have already seen the negative impact of the increase in console prices. The increase in console unit prices has directly caused a shrinkage in device shipments." explained Matt Piscatella, executive director of Circana's gaming business.
He added: "The signs are still scattered at present, but we have observed that some products are out of stock, which is likely due to the memory and component supply crisis."
Piscatella said that the Sony PS5 Pro is particularly hard to find, with some retailers selling second-hand consoles for more than $1,000; however, it is not yet confirmed whether this phenomenon is directly caused by the shortage of memory storage chips.
A key question looms, at least for Sony and Microsoft: How all this will impact the release of Take‑Two's Grand Theft Auto 6. As a highly anticipated entertainment masterpiece in history, it is generally believed that "GTA6" will drive a group of waiting consumers to buy game consoles.
But the high price of the console may deter potential buyers.
"I guess many of these consumers who have yet to buy this generation of consoles think that they can get a game console back by spending $200 in the store. But the reality is that if you want to play this masterpiece, the console will cost $600, 700, 800 or even $900." Piscatella said.
“Even if there are goods on the shelves, this price gap will have a huge price impact on consumers. I believe that the release of the game will indeed bring a certain degree of sales boost, but there are too many influencing factors involved behind it.”
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