Updated
Updated · Insider Gaming · Jul 22
US Video Game Spending Falls 21% to $4.5 Billion as Hardware Sales Sink 62%
Updated
Updated · Insider Gaming · Jul 22

US Video Game Spending Falls 21% to $4.5 Billion as Hardware Sales Sink 62%

3 articles · Updated · Insider Gaming · Jul 22

Summary

  • $4.5 billion in US video game spending for June was down from $5.7 billion a year earlier, with Circana showing the sharpest weakness in hardware.
  • Hardware revenue fell 62% to $383 million from $1 billion, a drop tied largely to the tough comparison with the Nintendo Switch 2 launch on June 5, 2025.
  • Content spending slipped 12% to $3.88 billion and accessories dropped 21% to $232 million, while subscriptions were the only segment to grow, rising 7% year over year.
  • Nintendo Switch 2 still led June console sales in both dollars and units; PS5 ranked second with a 19% annual decline, ahead of Xbox Series X|S.
  • For 2026 so far, US game spending is running 1% behind 2025 at $27.5 billion, suggesting the June slump has not yet pushed the market far off last year's pace.

Insights

Why is the video game market plummeting despite the Nintendo Switch 2's record-breaking success?
With console prices soaring due to chip shortages, is affordable gaming becoming a thing of the past?
Is the AI industry's insatiable demand for chips unintentionally crippling the future of console gaming?