A new Circana report shows US video game hardware sales fell 29% year-on-year in July 2026, with overall game spending down 9%, largely driven by a global shortage of RAM chips caused by the tech industry's rapid build-out of AI data centres. This "RAM-pocalypse" has forced console makers to raise prices repeatedly rather than cut them, which is unusual for this stage of the console generation and is undermining hardware sales at a time when discounts would normally be boosting player numbers and software revenue.

Sony has raised the PS5's price twice, from $499.99 at launch to $649.99 now, while Microsoft has hiked the Xbox Series X three times, taking it to $799.99, £300 more than at release. Nintendo will impose a $50 price rise on the Switch 2 from 1 September 2026. Overall US game spending dropped 10% in July to $4.5 billion, with mobile the biggest contributor to the decline. Analysts say the shortage also clouds plans for next-generation consoles, with Sony yet to confirm a PlayStation 6 release date and Microsoft positioning its upcoming Project Helix as a costly, niche platform.