The U.S. game market delivered an unsightly report card in July. According to Circana data, US physical game sales in July 2026 will only reach US$85 million (approximately NT$2.75 billion, HK$660 million, and MYR335 million), setting a record low since tracking began in 1995. Nowadays, players are becoming more and more accustomed to downloading games directly, and physical discs are slowly becoming something that “you only buy if you want to collect them.”
Console sales also plummeted!
In July, U.S. consumers’ total spending on video game-related products fell by 10% year-on-year, hardware sales fell by 29%, and console sales plummeted by 39%. Among them, PS5 sales dropped by 6%, Xbox Series dropped by 18%, and Switch 2 was even worse, falling by 51% year-on-year. However, we can’t entirely blame players for not buying it. Last year, Switch 2 was just launched and had a super high sales base. This year, it will naturally be a disadvantage to compare it.
Player wallets are not bottomless pits either
In addition to the high base effect, rising hardware prices are also an important reason for the market decline. The average selling price of new game consoles in July has reached US$542 (approximately NT$17,200, HK$4,220, and RM2,150), 16% higher than the same period last year. In other words, it is not simply that “players don’t want to buy it”, but that the price of consoles is getting more and more expensive, and players will naturally start to calculate whether this machine is worth emptying their wallets.
Nintendo is still holding on, but the physical market is getting thinner and thinner
In the physical game market, Nintendo is still the biggest winner, accounting for 63% of U.S. new physical game consumer spending from 2026 to now, while PlayStation accounts for 32%. But the overall trend is still obvious. Sony’s financial report shows that 82% of complete game sales on PS4 and PS5 platforms come from digital downloads. Physical games did not suddenly disappear overnight, but players gradually vacated the space next to the CD player.