US Video Game Hardware Spending Hits Lowest July Level Since 2020

Consumer spending on video game hardware in the United States fell sharply in July 2026, dropping to its lowest level for the month since 2020, according to new market data. The decline, attributed to sustained high console prices and a component shortage, signals a challenging period for the industry as it navigates an expensive hardware cycle.

Data from market research firm Circana shows that total U.S. hardware spending reached $282 million in July, a 29% decrease compared to the same month last year. This figure represents the weakest July for hardware sales since 2020, when spending was $163 million during the early pandemic period marked by severe console shortages. The average selling price of hardware increased by 16% to $542, while total unit sales plummeted by 39% year-over-year.

All major console platforms experienced declines. Nintendo Switch 2 unit sales fell by 51%, a drop partly contextualized by its record-breaking launch in June 2025. PlayStation 5 unit sales decreased by 6%, and Xbox Series X/S sales declined by 18%. Despite the unit sales drop, the Switch 2 maintained its position as the top-selling console by units, while the PlayStation 5 led in revenue.