A 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 game consoles to offset rising component costs and the earlier impact of tariffs. The price hikes have directly caused a sharp decline in sales.

Data from market research firm Circana shows that August gaming hardware sales fell 15% year-over-year, marking the lowest August sales level in 13 years.

Take Sony's PlayStation 5 as an example: the disc-free digital edition console launched in November 2020 at a starting price of $399, while the disc-drive version debuted at $499. The more powerful PS5 Pro was first introduced in early 2024 at $699, and its price has since climbed even higher.

Microsoft's Xbox Series S and Series X adopted a similar price increase strategy. The Series S originally sold for $299.

Affected by President Trump's "Liberation Day" tariff policy last year, Nintendo also raised the price of its Switch 2 console. On June 25, 2026, a TV screen displayed a pre-order page for Grand Theft Auto 6, with a PS5 controller placed in front of the screen.

According to Circana data, August gaming hardware consumer spending fell 3%, while cumulative spending for the year declined 11% year-over-year.

"We have already seen the negative impact of console price increases. Higher unit prices for consoles have directly caused device shipments to shrink," explained Matt Piscatella, Executive Director of Circana's gaming business.

He added: "The signs are still scattered at the moment, but we have observed some products going out of stock, which is very 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 used consoles for over $1,000; however, it cannot yet be confirmed whether this phenomenon is directly caused by the memory and storage chip shortage.

At least for Sony and Microsoft, a key question looms: what impact will all of this have on Take-Two's launch of GTA6? As the most highly anticipated entertainment blockbuster in history, GTA6 is widely expected to drive a wave of hesitant consumers to purchase game consoles. But high console prices may deter potential buyers.

"For those consumers who have been putting off buying a current-generation console, I guess many of them still think in their minds that they can walk into a store and pick up a game console for $200. But the reality is that to play this blockbuster, a console costs $600, $700, $800, or even $900," Piscatella said.

"Even if there is stock on the shelves, this price gap will deliver a huge price shock to consumers. I believe the game's launch will indeed bring some degree of sales boost, but there are simply too many factors involved behind it."