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Switch 2 Drives Small Rise in US Physical Game Spending

Analysts say the gain reflects a Switch 2‑driven bump that is unlikely to stop the industry's shift to digital.

Overview

  • Circana data show US spending on physical video games rose 3% year‑on‑year to $1.6 billion for the 12 months ending May 2026.
  • Nintendo platforms were the main driver, with physical software sales up about 26% over the prior year as Switch 2 hardware sold strongly.
  • Circana senior director Mat Piscatella warned the increase is likely temporary, noting non‑Nintendo platforms continue to fall by double digits.
  • Industry moves that reduce physical demand include major releases planned as download‑only or sold as 'code‑in‑the‑box', a trend already seen in the 2026 sales mix.
  • If console makers drop disc drives and publishers favor digital launches, physical copies are likely to persist mainly as niche collector products and could further squeeze retailers and secondhand sellers.