US hardware sales for the PlayStation 5, Xbox, and Nintendo Switch fell to their lowest July level since 2020, according to analyst tracking, as an ongoing shortage of RAM chips continues to squeeze the games industry. The shortage has been driving up component costs, feeding fears that console and hardware prices could rise further, which appears to be dampening consumer demand even as manufacturers try to hold prices steady.

The RAM supply crunch has been building for months and is being felt across the tech sector more broadly, not just gaming, as manufacturers compete for limited chip supply. Analysts point to this shortage, combined with lingering uncertainty over potential price increases, as key factors behind the weaker-than-expected July sales figures for all three major console platforms in the US market.