US video game spending drops 21 percent in June

Spending on video games in the United States fell sharply in June compared with the same month last year, according to new data from Circana.

Total industry spending across hardware, software, accessories and add-ons reached $4.5 billion, down 21 percent from $5.7 billion. Hardware sales led the decline with a 62 percent drop, largely because June 2025 had been boosted by the Nintendo Switch 2 launch.

Nintendo Switch 2 hardware spending fell 79 percent year-on-year yet remained the top platform in both units and dollars. PlayStation 5 hardware spending declined 19 percent, while Xbox Series X/S spending more than doubled from a low base.

Among new releases, UFC 6 led sales across platforms, followed by Meccha Chameleon with more than 4 million copies sold and Star Fox at number four. Subscriptions grew 7 percent while overall game content spending fell 12 percent.

The first half of 2026 finished just 1 percent behind the prior year, leaving room for recovery in the second half.

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The Nintendo Switch 2 sold 5.9 million units in the United States during its first 12 months on the market, making it the second fastest-selling console in the country's history. Data from Circana's May 2026 report showed the device outsold all other platforms that month. Meanwhile PlayStation 5 and Xbox hardware sales reached historic lows for the period.

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Microsoft's Xbox hardware revenue fell 33 percent year-on-year in Q3 FY2026, despite overall company revenue rising 18 percent to $82.9 billion. Gaming revenue declined seven percent, prompting Xbox leaders to pledge renewed focus on core fans. The firm recently cut Game Pass prices in response to customer feedback.

June's Nintendo Direct achieved the highest peak viewership among major Summer Game Fest showcases this year, according to analytics from LevelUp.

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Electronic Arts has achieved a new sales record of $8.026 billion for its fiscal year 2026, largely driven by the success of Battlefield 6. The milestone comes just two months after the company laid off an unspecified number of developers working on the game.

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