US Gaming Spending Sees Worst July Ever

Video game spending took a noticeable breather in July, marking a slight slump for the industry. While the market continues to roar with innovation, recent data suggests that overall consumer enthusiasm hit a momentary pause, prompting an examination of where the money is flowing and why.

Circana’s latest figures paint a picture of a challenging landscape. Total video game spending in the US dropped 10% year-over-year in July, settling at $4.5 billion. This contraction extended across the board, impacting physical software sales, which reached an all-time July low of $85 million since tracking began in 1995, and hardware sales, which saw their lowest July level since 2020.

The hardware sector bore the brunt of the economic pressures. Spending on video game hardware fell by a significant 29% compared to the previous year, totaling $282 million. This decline was especially pronounced in unit sales. While the PlayStation 5 managed to hold the top spot in dollar sales for the month, the market saw notable shifts: Xbox Series sales declined by 18%, and the Nintendo Switch 2 experienced a dramatic 51% drop in unit sales.

The rising cost of components, driven by the ongoing crisis, played a direct role in these figures. Hardware prices increased by 16%, pushing the average selling price for a new unit of video game hardware up to $542. This pressure impacted console platforms; for instance, PlayStation 5 unit sales fell 6% compared to July 2025, while the Xbox Series suffered an 18% decline.

Despite the hardware slowdown, content consumption remains vibrant. Total spending on game content fell 9% year-over-year to $4.1 billion. This dip was largely driven by decreased spending on mobile games, alongside a general decrease in spending on both console and PC titles.

In the realm of content sales, certain titles continued to dominate. Call of Duty: Black Ops 2 secured the title of best-selling game in dollar sales for July, thanks to its powerful PS5/PS4 port and predecessor. Meanwhile, the educational and sports titles also performed well, with EA Sports College Football 27 claiming the second-best position in full-game dollar sales.

The viral and social gaming sphere proved to be a major exception to the spending slump. Games leveraging social interaction saw massive surges. Monopoly Go experienced a major spike, fueled by a popular crossover with The Simpsons, making it the biggest game in terms of consumer spending that month. Similarly, Pokemon Go climbed several places in the top ten, reaching third position during its 10th anniversary month, driven by extensive real-world activations and anniversary events that boosted revenue by 230% month-over-month.

Looking ahead, the market is primed for major releases. Resident Evil: Requiem remains the top-selling game for 2026, but the holiday season promises new contenders. The anticipation surrounding upcoming releases, such as the impressive early sales for GTA 6, which reportedly brought in $400 million in preorders, suggests that blockbuster releases will continue to define the year’s success.

The ongoing spotlight on gaming continues to evolve, with titles like 007 First Light and the continuing dominance of franchises like Call of Duty: Black Ops and Forza Horizon 6 setting the standard for year-to-date sales. As we move toward the busy holiday season, the gaming world is poised to deliver some truly spectacular hits.