The US gaming console market has experienced an unprecedented downturn. According to Circana, sales of the Xbox in May were the worst on record, and PlayStation 5 shipments plummeted by 58%, reaching their lowest level since 2000. Customers are increasingly suffering from the continuing rise in prices of gaming hardware.

Financial market growth is driven solely by inflation, with total console spending up 38% to $249 million. If a year ago the average price tag was $440, now it is $502. The industry’s only engine is Nintendo Switch 2, which not only became the top-selling platform by the end of May and since the beginning of the year, but also showed the second fastest selling result in US history, behind only the legendary Game Boy Advance.

The situation is worsened by new announcements from manufacturers. Microsoft announced an increase in the Xbox line by another $100-150 from August 1, citing a global supply crisis. Now the top digital version of the Series X will cost $750. Valve, whose new Steam Machine will go on sale at a sky-high price of $1,049, faces similar problems. Experts warn that this mark could become the new minimum entry threshold for the world of next generation consoles, whose release is scheduled for 2027 and later.