Circana analyst Mat Piscatella said that U.S. video game spending dropped 10% in July, to $4.5B, despite the debut of several hit new releases. Mobile content was the biggest driver of the overall decline, with both Console and PC content also fell year-on-year. Hardware spending fell to a July low not seen since 2020.
NTDOY: Latest Developments and Market Implications
The hardware market comparables continue to be impacted by the record-setting June 2025 launch of Nintendo Switch 2 (NTDOY). However, the challenges extend far beyond simple cyclicality. Higher hardware prices driven by the RAM and component crisis have significantly impacted the selling rates of both PlayStation 5 (SONY) and Xbox Series (MSFT), with a price hike for Nintendo Switch 2 hardware coming on September 1st, 2026.
July video game hardware spending fell 29% when compared to a year ago, to $282M, the lowest total for a July month since 2020 when it was $163M. Total hardware unit sales fell 39% versus July 2025, while the average selling price of a new unit of video game hardware jumped by 16%, to $542. Unit sales were down on all console platforms when compared to a year ago.
PlayStation 5 unit sales fell 6% versus July 2025, while Xbox Series dropped 18% and Switch 2 declined by 51%. With 14 months in market, Nintendo Switch 2 is 11% ahead of the time-aligned sales pace of the original Nintendo Switch. Total content spending fell 9% in July when compared to a year ago, to $4.1B.
A decline in mobile spending was the primary driver of the drop, with lower Console and PC content spending also contributing. Activision’s “Call of Duty: Black Ops II” was projected as the best-selling game of July in dollar sales, driven by the release of a PlayStation port supporting PS4 and PS5. “Call of Duty: Black Ops” also received a PS4/PS5 port in the month and ranked 5th overall. EA’s “EA Sports College Football 27” was July’s #2 individual title in full game dollar sales.
However, were sales of “EA Sports College Football 27” and the “EA Sports MVP Bundle” combined it would have taken the top spot on the monthly best-sellers chart. Other top-selling games for the month in the U.S. were Ubisoft’s (UBSFY) “Assassin’s Creed Black Flag Resynced,” Microsoft’s “Halo: Campaign Evolved,” Nintendo’s “Splatoon Raiders,” and Bandai Namco’s (NCBDY) “Echoes of Aincrad: Sword Art Online.” Reference Link
