Console Sales Hit Record Lows as Prices Climb Higher
WHO:
Forbes - Microsoft and Sony are the primary console manufacturers mentioned.
Game File - Bungie, a studio owned by Sony, is involved in layoffs affecting its development team.
WHAT:
Forbes - The Nintendo Switch 2 is reported to be the second-fastest-selling console ever, with a 38% increase in sales compared to May 2025.
Game File - The Xbox Series S will increase in price from $300 to $500, and the Xbox Series X will rise from $500 to $800, marking the third price hike in just over a year.
Game File - The PlayStation 5 experienced a 58% drop in sales compared to May of the previous year, following a price increase in April 2026.
Forbes - Xbox sales are reported to be the lowest ever for May, while PlayStation 5 sales are at their lowest since 2000.
Forbes - The average new console price has increased by 14%, rising from $440 to $502.
Game File - Microsoft announced a price hike for the Xbox Series consoles, with the Xbox Series S increasing from $300 to $500 and the Xbox Series X from $500 to $800.
Game File - Bungie laid off “most” of its Destiny development team, impacting 292 workers in Washington State.
WHERE:
Game File - The layoffs at Bungie are specifically noted to be in Washington State.
WHEN:
Game File - The price hike for Xbox consoles is effective August 1.
Game File - The layoffs at Bungie are effective next month.
WHY:
Game File - Microsoft stated that the price increase was necessary due to a more than 2.5x increase in console storage and memory prices, with expectations of another doubling by fall 2027.
Forbes - Microsoft cited supply issues and increased production costs as reasons for the price hikes, with component prices having increased by 2x to 5x in recent years.
Game File - Microsoft explained that the price increase was necessary due to a more than 2.5x increase in console storage and memory prices, with expectations of another doubling by fall 2027.
Game File - The layoffs at Bungie were described as a decision made after extensive discussion to align the studio’s resources with its current priorities and long-term goals.
HOW:
Game File - A WARN notice issued by Sony to Washington State officials indicated that the layoffs at Bungie will impact 292 workers, effective next month.
Forbes - Microsoft has opted to discontinue its 2TB Xbox Series X due to high production costs, which would have required a price over $1,000.
Game File - The layoffs at Bungie were communicated through a WARN notice issued to Washington State officials.
(UPDATED June 26, 2026 19:35 UTC)
The Nintendo Switch 2 is making waves as the second-fastest-selling console ever, boasting a remarkable 38% increase in sales compared to May 2025. In contrast, Microsoft has announced significant price hikes for the Xbox Series S and X, raising their prices from $300 to $500 and $500 to $800 respectively, citing a dramatic rise in storage and memory costs. Meanwhile, a WARN notice from Sony reveals that layoffs at Bungie will affect 292 employees, with the changes set to take effect next month.
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(UPDATED June 26, 2026 17:34 UTC)
Microsoft and Sony are facing significant challenges in the gaming market, with Xbox sales hitting their lowest ever for May and PlayStation 5 sales at their lowest since 2000. In a move to address rising production costs, Microsoft announced a price hike for the Xbox Series consoles, effective August 1, while Bungie, owned by Sony, laid off most of its Destiny development team, impacting 292 workers in Washington State, with layoffs effective next month. The price increases come as component prices have surged, with Microsoft citing a more than 2.5x rise in console storage and memory prices, and the decision to downsize at Bungie was made to realign resources with the studio's current priorities and long-term goals.