U.S. Video Game Spending Dropped 10% in July Despite Debut of Several Hit New Releases
U.S. Video Game Market Notes by Mat Piscatella, Senior Director, Video Games at Circana
U.S. video game spending across content, hardware and accessories fell 10% in July when compared to a year ago, to $4.5 billion. Mobile was the biggest driver of the overall decline, with both Console and PC content also dropping year-on-year (mobile spending provided by Sensor Tower). New physical software dollar sales dipped to an all-time July low of $85 million (since tracking began in 1995), while hardware spending fell to a low not seen since July 2020, when pandemic-fueled sellouts and logistics challenges made finding new video game hardware to buy extremely difficult. Subscription spending was the only category showing growth in July versus a year ago (+6%).
The market comparables continue to be impacted by the record-setting June 2025 launch of Nintendo Switch 2. However, the challenges extend far beyond simple cyclicality. Higher hardware prices driven by the RAM and component crisis have significantly impacted the selling rates of both PlayStation 5 and Xbox Series, with a price hike for Nintendo Switch 2 hardware coming on September 1st, 2026.
On the software side, Sony announced it would cease production of physical software for new games effective January 2028. For the 2026 year-to-date period, sales of physical software for PlayStation hardware accounted for 32% of total US consumer spending on new physical games. 63% of year-to-date spending on new physical software went to games made for Nintendo platforms.
Top 10 Selling Video Games (Retail and Digital) Month Ending July 2026
Rank | Rank Last Month | Title | Publisher |
1 | 67 | Call of Duty: Black Ops II* | Microsoft (Corp) |
2 | NEW | EA Sports College Football 27* | Electronic Arts |
3 | NEW | Assassin's Creed: Black Flag: Resynced* | Ubisoft |
4 | NEW | EA Sports MVP Bundle (2026)* | Electronic Arts |
5 | 150 | Call of Duty: Black Ops* | Microsoft (Corp) |
6 | NEW | Halo: Campaign Evolved* | Microsoft (Corp) |
7 | NEW | Splatoon Raiders* | Nintendo |
8 | NEW | Echoes of Aincrad: Sword Art Online^ | Bandai Namco Entertainment |
9 | 6 | Tomodachi Life: Living the Dream* | Nintendo |
10 | 3 | 007 First Light* | IO Interactive |
^ Includes Digital Point of Sale Actuals - * Includes Digital Sales Projections
Top 10 Selling Video Games (Retail and Digital), Year-to-Date 2026
Rank | Rank Last Month | Title | Publisher |
|---|---|---|---|
1 | 1 | Resident Evil: Requiem^ | Capcom USA |
2 | 3 | 007 First Light* | IO Interactive |
3 | 2 | Crimson Desert* | Pearl Abyss |
4 | 4 | MLB: The Show 26^* | Multiple Video Game Publishers |
5 | 130 | Call of Duty: Black Ops II* | Microsoft (Corp) |
6 | 5 | Forza Horizon 6* | Microsoft (Corp) |
7 | 7 | Tomodachi Life: Living the Dream* | Nintendo |
8 | 6 | LEGO Batman: Legacy of the Dark Knight^ | Warner Bros. Games |
9 | 8 | Pokemon: Pokopia* | Nintendo |
10 | NEW | EA Sports College Football 27* | Electronic Arts |
^ Includes Digital Point of Sale Actuals - * Includes Digital Sales Projections
Hardware Key Takeaways
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).
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%.
PlayStation 5 led the July hardware market in dollar sales, with Nintendo Switch 2 leading in units sold during the month.
With 14 months in market, Nintendo Switch 2 is 11% ahead of the time-aligned sales pace of the original Nintendo Switch.
Content Key Takeaways
Total content spending fell 9% in July when compared to a year ago, to $4.1 billion. A decline in mobile spending was the primary driver of the drop, with lower Console and PC content spending also contributing.
Call of Duty: Black Ops II was projected as the best-selling game of July in dollar sales, driven by the release of a PlayStation port supporting PS4 and PS5. Call of Duty: Black Ops also received a PS4/PS5 port in the month and ranked 5th overall.
EA Sports College Football 27 was July’s #2 individual title in full game dollar sales. However, were sales of EA Sports College Football 27 and the EA Sports MVP Bundle (2026) combined it would have taken the top spot on the monthly best-sellers chart.
In Mobile content, Sensor Tower reports that the top 10 mobile games in July consumer spending and the change from June as: MONOPOLY GO!, Royal Match, Pokémon Go (+10), Candy Crush Saga (-1), Gossip Harbor (-1), Kingshot (-1), Township (+1), Garena Free Fire (+2), Whiteout Survival (-2) and Last War: Survival (-4).
“Pokémon GO was the biggest mover, climbing to third during its 10th anniversary month,” said Bryan Isagholian of Sensor Tower. “Niantic ran boosted XP events, anniversary-themed Pokémon, 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.”
Accessories Key Takeaways
July accessories spending decreased by 6% when compared to a year ago, to $178 million. This is the lowest July total for accessories spending since 2019 ($144 million).
Racing Controller spending fell 26% compared to a year ago, while Cases & Organizers dollar sales increased by 36% versus July 2025.
