Physical video game sales in the US hit their lowest point in 30 years

The traditional format falls, but the total spending in the industry continues to grow.

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The physical video game market in the United States has reached its lowest point since modern records began in 2025. According to data published by the analysis firm Circana and shared by analyst Mat Piscatella, physical sales totaled around $1.5 billion, the lowest figure in 30 years of tracking the sector.

The data confirms a trend that has been consolidating over time: consumers are migrating to digital models. However, the rate of decline offers an interesting nuance.

Physical format contracts while the global market grows

Physical sales fell by 11% compared to 2024, which is the smallest decline since 2021. The previous year, the decline was 28%, so the downturn has moderated. However, if the 1995 figures are adjusted for accumulated inflation (approximately 113% until 2025), the contrast is even more striking.

• What’s interesting is that, while physical support is at an all-time low, total spending on video games in the United States grew by 1.4% in 2025, reaching $60.7 billion in hardware, content, and accessories. Circana even suggests that 2026 could become a record year for consumption.

Among the factors that explain this difference are the expansion of digital gaming, the faster adoption of cloud gaming, and the consolidation of subscription services like Xbox Game Pass or the PlayStation Plus catalog. Piscatella points out that the decline of the physical format is slowing down in part because the market is close to its natural floor, which also helped stabilize the launch of new consoles like Switch 2.