US physical game sales slump to 1995-low as Switch 2 reshapes hardware market

US July physical software sales fell to $85 million—the lowest monthly total since Circana began tracking in 1995—while hardware spending dropped 29% YoY to $282 million; the average console price rose to $542 amid Switch 2 expectations and component shortages. Unit sales declined across PS5 (6%), Xbox Series (18%), and Switch 2 (51%), though Switch 2 led in units and PS5 led revenue. Content spending fell 10% to $4.5 billion despite six new Top 10 releases, with Pokémon Go up 230% YoY during its 10th anniversary; Call of Duty: Black Ops 2 topped July sales, followed by EA Sports College Football 27, and Circana published a projected top-10 for July 5–Aug 8, 2026.