Video game spending in the United States experienced a notable slump in July, falling 10% year-over-year to reach $4.5 billion, according to new data released by Circana. This marks one of the worst Julys for industry spending in recent years.
Hardware and Software Sales Hit Lows
The decline was particularly pronounced in physical software sales, which plummeted to an all-time July low of $85 million since Circana began tracking in 1995. Hardware sales also saw a significant drop, reaching their lowest point for a July month since 2020. Circana attributes part of this downturn to increased hardware prices, influenced by component shortages impacting PlayStation 5 and Xbox Series X/S production, as well as the continued impact of the previous year's record-breaking launch of the Nintendo Switch.
"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," stated Mat Piscatella, Video Games at Circana senior director. Total hardware unit sales decreased by 39% compared to July 2025, while the average selling price for new hardware units increased by 16% to $542. Unit sales for all console platforms were down year-over-year, with the PlayStation 5 seeing a 6% decrease, Xbox Series dropping 18%, and the Switch experiencing a 51% decline.
Despite the overall decline, the PlayStation 5 led the hardware market in dollar sales for July. The Nintendo Switch, however, sold the most units overall, continuing its strong performance a year into its lifecycle. Over the same period, the Switch has now outsold the original Switch by 11%.
Content Spending and Top Performers
Spending on game content, encompassing digital and physical full-game sales, fell 9% in July compared to the previous year, totaling $4.1 billion. This decrease was largely driven by a decline in spending on mobile games, though console and PC game spending also saw a reduction.
In terms of individual game sales for July, Call of Duty: Black Ops 2 topped the charts in dollar sales, bolstered by a new port for PS5 and PS4. EA Sports College Football 27 followed as the second best-selling title. Monopoly Go experienced a significant surge in consumer spending, largely due to a crossover event with The Simpsons. Pokemon Go also climbed several places in the top ten, reaching third place during its 10th-anniversary month, with revenue rising 230% month-over-month thanks to various in-game events and real-world activations.
Looking at year-to-date sales for 2026, Resident Evil: Requiem remains the best-selling game in the US. However, upcoming releases and the busy holiday season are expected to shift the landscape, with titles like NBA 2K27 and the new Call of Duty installment anticipated to become top sellers. Early reports suggest significant pre-launch sales for Grand Theft Auto 6, which is slated for release in November.