CHICAGO, IL, February 11, 2026 – The U.S. video game industry enters 2026 with the potential to reach a new record high in consumer spending, following a year of slight growth driven by new hardware, rising subscription engagement, and robust player demand across platforms. According to Circana’s latest Games Market Dynamics report, total U.S. consumer spending on video game hardware, content, and accessories reached $60.7 billion in 2025, marking a +1.4% increase over 2024. 

Circana projects U.S. video game industry spending to rise +3% to $62.8 billion in 2026, surpassing the current all‑time high of $61.7 billion set in 2021. This growth is expected to be fueled by the second year of Nintendo Switch 2, unprecedented anticipation for Grand Theft Auto VI, and continued strength in subscription‑based content.

Here are the key opportunities and challenges for the gaming industry in 2026:

Riding the Wave of Nintendo Switch 2: The launch of Nintendo Switch 2 was able to offset year-over-year hardware spending declines across other platforms. Becoming the fastest‑selling home console in U.S. history after just seven months in market, the Switch 2’s momentum is expected to accelerate in 2026. Continued strength across Nintendo’s franchises will further lift hardware and software sales, as well as digital engagement.

Grand Theft Auto VI Headlines Software Surge: Launching in November, GTA VI holds the highest purchase intent ever recorded in Circana’s tracking history, and could result in a boost across hardware, accessories, and subscription demand – alongside other anticipated hits including Resident Evil: Requiem, Pokémon: Pokopia, and Marvel’s Wolverine. 

Subscription Spending Remains Strong: Gaming subscriptions were a bright spot in 2025 and are expected to continue growing as consumers seek value and access to expansive game libraries. 

Hardware Pressure from Component Costs: Rising prices for RAM, GPUs, CPUs, and storage — driven by AI data center demand — could further constrain hardware availability and affordability.

Consumer Behavior Shifts: Younger players are shifting more heavily toward PC and mobile, where top titles like Roblox, Minecraft, and Fortnite dominate. If hardware becomes cost-prohibitive, expect increased play on existing devices, growth in PC and mobile gaming, and accelerated adoption of cloud gaming. 

Emerging Disruptors: Valve’s upcoming Steam Machines could shake up the console market if priced competitively and widely available. 

Macroeconomic Factors: When considering potential cost increases due to tariffs and/or other factors, more than one-third of consumers would purchase fewer full-price games at launch (38%) or would wait longer for video games to be on sale (34%), according to the latest findings from Circana’s Future of™ Video Games report. Furthermore, 27% would spend more time playing free-to-play games.  

“The 2026 U.S. video game market brings great opportunity — and risk,” said Mat Piscatella, video games industry advisor at Circana. “While overall hardware faces headwinds, a stellar slate of software and strong subscription engagement suggests a particularly exciting year. Hold on —2026 could prove to be one heck of a ride.” 

About Circana Circana is a leader in providing technology, AI, and data to fast-moving consumer packaged goods companies, durables manufacturers, and retailers seeking to optimize their businesses. Circana’s predictive analytics and technology empower clients to measure their market share, understand the underlying consumer behavior driving it, and accelerate their growth. Circana’s Liquid Data® technology platform is powered by an expansive, high-quality data set, and intelligent algorithms trained on six decades of domain expertise. With Circana, clients can take immediate action to future-proof and evolve their growth strategies amid an increasingly complex, fast-paced, and ever-changing economy.   

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Marissa Guyduy

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Circana