Video game industry spending in the United States experienced a significant decline in June, dropping by 21 percent compared to the same month last year. Total revenue for the month reached $4.5 billion, down from $5.7 billion in the previous year. This downturn affected nearly all segments of the market, including hardware, software, accessories, and add-ons.
Despite the overall slump, the first half of the year remains only one percent behind the same period in 2025. Analysts are hopeful that the release of major titles in the latter half of the year, such as Grand Theft Auto 6, could help offset the earlier decline.
Hardware sales saw the most dramatic decrease, with spending falling by 62 percent year-on-year. This sharp drop is largely attributed to the comparison with June 2025, which included the launch of the Nintendo Switch 2, setting a record for hardware and accessory spending. The Nintendo Switch 2 itself experienced a 79 percent decline in spending compared to its launch month.
The PlayStation 5 also saw a decrease in hardware spending, with a 19 percent year-on-year drop. While this is an improvement from May's 58 percent decline, it still marks a significant downturn.
In contrast, Xbox hardware spending was the only segment to show year-on-year growth, more than doubling compared to the previous year. However, this growth follows a period of historically low sales for the platform in May, making the improvement less substantial in absolute terms. Despite this, the Nintendo Switch 2 remained the best-selling platform in both unit and dollar sales for June, and maintains its lead year-to-date, with the PlayStation 5 in second place.
In terms of software, UFC 6 was the top-selling new release for June. It was followed by the viral Steam hit Meccha Chameleon, which is estimated to have sold over 4 million copies. Star Fox also debuted in the top ten, securing the fourth position.
Overall spending on game content decreased by 12 percent. However, the subscriptions segment bucked the trend, growing by 7 percent in June. This makes subscriptions the sole area tracked by Circana to achieve growth during the month. The July report is expected to show improvement due to anticipated releases like Assassin's Creed Black Flag Resynced, EA Sports College Football 27, Splatoon Raiders, Halo: Campaign Evolved, and a resurgence of Palworld.
