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Spending on bodily recreation disks has fallen to the bottom recorded stage since monitoring started in 1995, in keeping with a brand new report documenting a drastic droop within the console market. U.S. console {hardware} gross sales fell 39% by unit quantity in July towards a 12 months earlier, whereas the typical worth paid for a brand new system rose 16% to $542, in keeping with Circana data posted by analyst Mat Piscatella on August 20.
Dollar gross sales got here in at $282 million, down 29% and the bottom July whole since 2020, with Piscatella tying the drop to console worth will increase attributable to the RAM and part disaster, a hyperlink Circana hadn’t made in its month-to-month reporting earlier than. PlayStation 5 models fell 6%, Xbox Series models fell 18%, and Switch 2 models fell 51%, with Nintendo’s personal $50 worth improve nonetheless to return on September 1.
PS5 greenback gross sales rose 29% in July whilst unit gross sales fell 6%, a spot pushed by Sony’s $100 increase across the PS5 range in April, which took the standard console to $599 and the PS5 Pro to $899. Sony still led the month in dollar sales, while the Switch 2 led in unit volume.
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Switch 2 dollar sales fell 52% alongside the 51% unit decline, and the original Switch dropped 62% in units and 61% in dollars. Nintendo’s Switch 2 is the only one of the three current platforms that hasn’t raised its U.S. price yet, but that’ll change when the console goes to $499 on September 1. The company’s RAM costs for the console rose 41% late last year, and Nintendo reportedly cut planned Switch 2 output by 2 million units in March. Piscatella noted the comparison is skewed by the record-setting June 2025 launch, and that the Switch 2 is still 11% ahead of the original Switch’s time-aligned pace.
Xbox Series dollar sales fell 18%, matching its unit decline, after Microsoft raised prices on every Xbox model for the third time in two years and dropped the 2TB Series X. Xbox CEO Asha Sharma has said the company will pay five times more for memory and storage in 2027 than it did two years earlier. Taken together, the July numbers work out to roughly 520,000 consoles sold across all platforms, against around 850,000 a year earlier, based on Circana’s dollar totals and average selling prices.
As for physical game discs, spending fell to $85 million in July, the lowest July figure Circana has recorded since tracking began in 1995, according to the firm’s full report as cited by Kotaku. Nintendo platforms account for 63% of U.S. bodily recreation spending up to now in 2026 and PlayStation for 32%, leaving Xbox a little bit over 4% as soon as PC collector’s editions are stripped out. Sony has already dedicated to ending disc manufacturing for brand spanking new PlayStation video games in January 2028.
Microsoft stopped sharing digital gross sales knowledge with Circana as of the July report, Piscatella confirmed, and EA additionally left the agency’s digital panel across the time it went non-public. That means Circana now estimates relatively than measures digital gross sales for Xbox, Activision, and Bethesda titles, together with Call of Duty: Black Ops II, which topped July’s chart on its new PS4 and PS5 port. Total U.S. online game spending throughout content material, {hardware}, and equipment fell 10% to $4.5 billion in July.
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