US Physical Game Sales Hit Lowest Monthly Total Since 1995
US physical game sales have plummeted to their lowest point in over three decades, with Circana reporting that consumer spending on physical software reached just $85 million in July 2026. This figure marks the lowest monthly total since the company began tracking the data in 1995.
The decline extends beyond software to hardware as well. Hardware spending fell 29% year-over-year to $282 million, representing the lowest July total since 2020.
Nintendo Dominates Amidst Supply Chain Challenges
Despite the overall downturn, Nintendo platforms accounted for a staggering 63% of consumer spending on new physical games, while Sony represented 32%. This dominance comes despite Sony's announcement that it will stop producing physical software for new games starting in January 2028.
Circana's Mat Piscatella highlighted the lingering impact of the record-breaking Nintendo Switch 2 launch from last June. While unit sales declined across all platforms—PS5 dropped 6%, Xbox Series X fell 18%, and Switch 2 saw a sharp 51% decline—the Switch 2 still led July in units sold, whereas the PS5 led in revenue.
Piscatella noted that selling rates for both the PlayStation 5 and Xbox Series have been significantly impacted by ongoing RAM and component shortages. He also warned of a price hike for Nintendo Switch 2 hardware scheduled for September 1.
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