U.S. Console Spending Falls 29% to $282 Million as Price Hikes Bite
Updated
Updated · Gizmodo · Aug 20
U.S. Console Spending Falls 29% to $282 Million as Price Hikes Bite
3 articles · Updated · Gizmodo · Aug 20
Summary
$282 million in U.S. console hardware spending in July marked a 29% year-over-year drop, with Circana saying sales sank to their weakest levels since the start of the COVID pandemic.
Higher console prices tied to a RAM and component crunch drove the slump, hitting PlayStation 5 and Xbox Series hardest as Nintendo still prepares to raise Switch 2's price to $500 from $450 on Sept. 1.
Broader game spending also weakened: total U.S. video game spending fell 10% to $4.5 billion, content sales dropped 9%, and accessories spending slipped 6% even after major new releases.
The downturn leaves Sony, Microsoft and Nintendo facing a tougher path for future hardware, especially with next-generation consoles likely to cost even more.