$282 million was spent on new video game hardware in the US this July, which is much less than you\u2019d think, and barely anyone bought physical Xbox games.<\/p>\n
In previous generations, it was worth waiting a few years after a new console launched so you could pick it up at a lower price. That\u2019s not the case anymore though, as current gen consoles have only grown more expensive since launch.<\/p>\n
Thanks to multiple price hikes, the PlayStation 5 and Xbox Series X are now, at their cheapest, \u00a3519.99 and \u00a3619.99, respectively, and even the Nintendo Switch 2 is set to go up in price after just over a year on the market.<\/p>\n
Combined with everything else being more expensive than ever, it should come as no surprise that new video game hardware has become less of a priority for ordinary customers, as spending in the US has dropped so low that it\u2019s comparable to the days of the coronavirus pandemic.<\/p>\n
This is according to a report by Circana analyst Mat Piscatella, who has shared US sales data for July on Bluesky and said that hardware sales dropped by 39% compared to the same month last year.<\/p>\n
Overall hardware spending for the month dropped to $282 million (about \u00a3207 million), which is a 29% decline compared to the same period last year and also the worst July for hardware spending since 2020.<\/p>\n
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$163 million (about \u00a3120 million) was spent on hardware in June 2020 and that was four months after the US began implementing lockdowns in response to the coronavirus.<\/p>\n
Granted, the Nintendo Switch 2 saw a very successful launch in June 2025, so a decline in hardware spending is to be expected. As Piscatella points out though, this is clearly driven by how pricey game consoles are, which in turn is a result of the ongoing component crisis that is also impacting the PC and mobile markets.<\/p>\n
The Switch 2 actually saw the biggest decline in sales compared to last year \u2013 a 51% drop \u2013 but, again, that\u2019s compared to its launch period and the fact that the only Switch 2 exclusive in July was spin-off game Splatoon Raiders.<\/p>\n
Meanwhile, PlayStation 5 sales declined by 6% while Xbox Series X\/S sales dropped by 18%, although they\u2019re now so low it\u2019s barely worth counting anymore.<\/p>\n
Hardware \u2013 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%.<\/p>\n
July was also a typically quiet month for new video game releases, so there was very little to encourage people to pick up a new console. Although that was the month of Halo: Campaign Evolved, a remake of the first Halo game meant to revitalise interest in the franchise and expand its audience with its PlayStation debut.<\/p>\n
It already seemed as if the Halo remake hadn\u2019t been as much of a hit as Microsoft probably wanted it, especially on PlayStation 5, and it doesn\u2019t seem to have moved many new Xbox consoles either.<\/p>\n
Circana does project it as being the sixth best selling game of July 2026, but that\u2019s behind the likes of the Assassin\u2019s Creed 4: Black Flag remake, EA Sports College Football 27, and Activision\u2019s PlayStation 4 and 5 ports of the first two Call Of Duty: Black Ops games.<\/p>\n