US Video Game Industry Faces Downturn As Console Prices Soar To Record Highs

The video game industry in the United States is experiencing a downturn, with November witnessing historically bad hardware sales. As the PlayStation 5 and Xbox Series consoles celebrate their fifth birthday, consumers are faced with a harsh reality: steeper prices. The average cost of a new console has skyrocketed to an all-time high of $439, an 11 percent increase from 2024, according to Circana analyst Mat Piscatella. This surge in prices can be attributed to the rising costs of consoles, a trend that has been unfolding throughout the year.

The hikes have undoubtedly impacted consumer behavior, with Piscatella’s data revealing a significant shift in purchasing patterns. In contrast, the average price in November 2019 was a relatively modest $235. Despite the release of Call of Duty: Black Ops 7, which emerged as the best-selling game of the month, the franchise as a whole experienced a decline in sales.

Specifically, full game dollar sales plummeted by a double-digit percentage compared to November 2024. In response to this trend, Activision has announced a strategic shift in its Call of Duty release schedule. The company will no longer release Modern Warfare and Black Ops games consecutively, a move that may potentially revitalize the franchise.