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U.S. physical game sales hit lowest level since 1995 in July, hardware also fell sharply

Olivia Bennett by Olivia Bennett
August 20, 2026
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U.S. physical game sales hit lowest level since 1995 in July, hardware also fell sharply
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IL US video game market Results were poor in July, particularly in terms of retail software and hardware sales. According to Circana data, Physical games only generated $85 million in revenueIL Lowest monthly total since 1995when companies began monitoring the industry. This figure confirms the rapid decline of the physical format, although its presence on some platforms remains relevant.

PlayStation will stop producing disc-based games starting in January 2028, but will still account for 32% of consumer spending on physical games that month. Nintendo, on the other hand, maintained its dominance, accounting for 63% of total spending.

Game console sales are also declining

Decline isn’t just about software. There Hardware spending fell 29% year-on-yearended at $282 million, Worst July since 2020The PS5 and Xbox Series have been nearly impossible to find during the pandemic, with sales down 39%, while average prices have increased by 16% due to recent price increases for the PS5, Xbox Series, and Nintendo Switch 2.

own switch 2Despite a 51% drop in sales, sales still led the month, while PS5 Excellent performance in terms of revenue. Circana pointed out that 14 months after its launch, Switch 2 is still selling 11% ahead of the original Switch.

Ubisoft CEO says abandoning discs ‘won’t disrupt’ video game industry

Ubisoft CEO says abandoning discs won't disrupt video game industry

To sum up, July 2026 is an unforgettable month For the US market: la total cost for content, hardware and accessories Down 10% to $4.5 billionalthough there are 6 new releases in the top 10. Paradoxically, 4 out of 10 spots are taken by remakes or conversions of older games, with the number one spot being 2012’s Call of Duty: Black Ops 2, driven by the launch of PS4 and PS5 versions.

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