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US Video Game Spending Just Had One Of Its Worst Julys Ever

GameSpot · Darryn Bonthuys · Aug 20, 2026, 1:00 PM

After a few solid months, it looks like video game spending hit a slump in July. That's according to new data by Circana, with the analyst firm saying that total video game spending in the US fell 10% year-over-year in July to $4.5 billion. New physical software sales also hit an all-time July low of $85 million--since tracking began in 1995 by Circana--and hardware sales dropped to their lowest July level since 2020. According to Circana, higher hardware prices driven by the components crisis have had a significant impact on PS5 and Xbox Series X|S console sales, and year-over-year metrics continue to suffer against the record-breaking June 2025 launch of the Nintendo Switch 2.

"July video game hardware spending fell 29% when compared to a year ago, to $282 million, the lowest total for a July month since 2020 ($163 million)," Video Games at Circana senior director Mat Piscatella explained in the report. "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%."

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The PS5 still led the July hardware market in dollar sales, while the Switch 2 sold the most units overall last month. Having been on the market for 14 months, the Switch 2 is outselling the original Switch by 11% over the same period. Circana also noted that for the 2026 year-to-date period, physical game sales for PlayStation consoles accounted for 32% of total US consumer spending, while spending on physical games for Nintendo hardware sat at 63%.

In terms of content, spending fell 9% in July when compared to a year ago, to $4.1 billion. Circana noted a decline in spending on mobile games as the primary driver of this drop, alongside a decrease in spending on console and PC games. For the video game highlights, Call of Duty: Black Ops 2 was the best-selling game of July in dollar sales, thanks to a PS5/PS4 port of it and its predecessor. EA Sports College Football 27 was July’s second-best-selling individual title in full-game dollar sales.

Monopoly Go also experienced a surge in popularity--thanks mostly to a crossover with The Simpsons, and was the biggest game when it came to consumer spending. Pokemon Go also hopped several places upward in the top ten on the back of its anniversary celebrations. "Pokemon Go was the biggest mover, climbing to third during its 10th anniversary month," Sensor Tower's Bryan Isagholian added. "Niantic ran boosted XP events, anniversary-themed Pokemon, and follow-up events through July, alongside larger real-world activations like Go Fest and a Times Square Mega Mewtwo raid. Revenue rose +230% month-over-month."

Resident Evil Requiem is still the best-selling game in the US for 2026, but it could drop a few places soon. As we draw closer to the busy holiday season, sports games like NBA 2K27 and AAA releases like Call of Duty usually emerge as the year's best-sellers. On top of that, early sales for GTA 6 are looking impressive, reportedly bringing in $400 million before the game's launch in November.

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