International increases in console and video game prices have filtered into the South African market.
Price increases have hit the video game market in South Africa, which is expected to cause a downturn in sales of PlayStation and Xbox titles.
This would see South Africa follow trends seen in the United States, where total videogame spend declined by 10% in July.
Research from consumer behaviour advisor Circana indicated that spending on content, hardware, and accessories in the US declined compared with the same period last year.
“New physical software dollar sales dipped to an all-time July low of $85 million (since tracking began in 1995), while hardware spending fell to a low not seen since July 2020,” the company stated.
“Subscription spending was the only category showing growth in July versus a year ago (+6%).”
Circana argued that higher hardware prices, driven by the RAM and component crisis, have significantly impacted sales for both PlayStation 5 and Xbox Series titles.
Unit sales were down on all console platforms when compared to a year ago. PlayStation 5 unit sales fell 6% compared to sales in July 2025.
The drop was worse for Microsoft’s embattled gaming system, with Xbox Series game sales dropping by 18%. However, Nintendo experienced the worst of the market decline in July.
Nintendo Switch 2 game sales dropped by 51% in July, likely due to a combination of high prices and a lack of blockbuster releases.
Switch 2 game prices could increase again following a price hike affecting games sold for the console from 1 September 2026.
Despite the sales slump for Nintendo, it still led the US market in total units sold in July 2026. PlayStation 5 was leading the market in terms of dollar sales.
Mario dos Santos, CEO of Gamefinity, PlayStation’s official distributor for South Africa, told MyBroadband that price increases took effect in the local market later than in the US.
This was due to comparatively fluid stock holding levels, he said. Major local hardware vendors like Acer and Evetech said they were relying on previously acquired stock to cushion against price hikes.
However, as these stocks have dwindled, they have been forced to take in new stock at higher prices, which are passed on to consumers.
Dos Santos said that at the moment, there were no sales figures to indicate whether there was a slowdown compared to the prior year.
“We do, however, expect volumes to be a little softer for a short period,” he said. “The imminent release of Wolverine and GTA VI in October is expected to give some impetus to the volumes.”
Otherwise, Dos Santos said the local console market has remained resilient amid global shocks and price hikes driven by the memory crisis.
Arthur Goldstuck, technology expert and CEO of analytics firm World Wide Worx, believes that the price problem could have a worse impact on South Africa than on the US when it comes to console sales.
“We pay in rand for consoles whose prices are set internationally, so any increase is amplified by the exchange rate and the cost of bringing the machines into the country,” he said.
“For many households, a new console is already a major purchase. Push the price up again, and people will keep their current machine for another year or buy one second-hand.”
Goldstuck said that physical console games continue to have a stronger practical use in South Africa than in the US, a key consideration as Sony prepares to discontinue physical games.
“Sony may save money by ending production of new physical games, but it will also take away the cheapest route many gamers have to newer titles,” he said.
Goldstuck cautioned that US retail sales figures could be misleading for South Africa, as the South African market is unique.
“These figures capture the most expensive part of gaming, but miss most of the people playing games,” he said.
“They also miss second-hand console and disc sales, along with much of the money spent through international app stores and gaming platforms.”
The downturn in console game sales was not the primary cause of the July drop in total content spending. A decline in mobile spending was the main driver.
In South Africa, mobile gaming is a large segment of the market. Research from Carry1st in 2024 estimated that mobile accounted for almost 90% of gaming revenue across Africa.
