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U.S. Video‑Game Spending Drops 21% in June as Xbox Hardware Grows

Comparison to last year’s record Switch 2 launch and higher console prices help explain the contraction and leave recovery tied to major fall releases.

Overview

  • Circana’s monthly report, published Wednesday, shows U.S. video‑game spending fell 21% year‑over‑year in June to about $4.5 billion.
  • Hardware spending collapsed 62% to $383 million because June 2025 included the record Switch 2 launch, with Switch 2 dollar sales down 79% yet still the top system by units and revenue.
  • Xbox was the only platform to grow hardware dollars in June, with spending more than doubling and unit sales roughly 86% higher while the average Xbox price rose about 13%.
  • Game content revenue fell about 12% year‑over‑year in June while subscription revenue rose roughly 7%, making subscriptions the only expanding segment.
  • Six‑month spending is essentially flat versus 2025, leaving the industry reliant on big third‑quarter and fall releases to drive a full rebound as higher component costs and announced price hikes keep hardware prices elevated.