Overview
- Circana's July report, published Thursday, shows U.S. hardware spending fell 29 percent year‑over‑year to $282 million, driving total games, hardware and accessories spending down about 10 percent.
- Unit sales plunged 39 percent while the average new console price rose 16 percent to $542, evidence that higher prices are cutting consumer demand.
- Platform breakdowns in July show Switch 2 units down 51 percent, PlayStation 5 units down 6 percent, and Xbox Series units down 18 percent, with the Switch comparison affected by its strong June 2025 launch window.
- New physical game sales reached their lowest level since tracking began in 1995, reflecting a long shift to digital purchases and growing reliance on existing game libraries.
- Subscriptions were the lone growth area, up about 6 percent, and analysts warn the RAM and component shortage that lifted prices could trigger further hardware hikes and slower sales ahead.