US consumer spending on gaming hardware plunged so sharply in July 2026 that it nearly matched the depths of mid-2020, when pandemic-related shortages left shelves empty. This time, however, the decline stems not from a lack of supply but from high prices deterring buyers, according to new figures from industry analysts Circana. The data points to a broader pullback in consumer spending across the games industry, with shoppers apparently favouring existing titles over new purchases.

Hardware spending fell 29% year-on-year in July, with every console platform selling fewer units than in July 2025. Physical software spending also hit an all-time low, the weakest figure since Circana began tracking in 1995, with PlayStation accounting for 32% of 2026's physical new-game spending and Nintendo 63% — notable given Sony's plan to end PlayStation disc manufacturing from January 2028. Overall spending on games, hardware and accessories dropped 10% year-on-year, with subscriptions the only category to grow, up 6%. Call of Duty: Black Ops 2's PS4/PS5 port topped July's chart, with the two Black Ops re-releases estimated to have sold 11 million copies combined, while Halo: Campaign Evolved landed sixth.