Physical video game sales in the US hit their lowest-ever July total, with just $85 million spent on physical software last month, the worst figure since Circana began tracking data in 1995. The slump underscores the industry's accelerating shift towards digital distribution and lands shortly after Sony's announcement that it will stop producing physical PlayStation game discs from 2028, a decision that has provoked backlash from gamers and retail groups over concerns about preservation and consumer choice.

Circana's data shows PlayStation software accounted for 32% and Nintendo 63% of year-to-date US physical game spending, though overall figures for 2026 remain unavailable. Sony's own financials show an 82% digital download ratio across PS4 and PS5, with only seven PlayStation titles selling over 100,000 physical copies so far this year. July was weak more broadly too: total US video game spending fell 10% year-on-year and hardware spending dropped 29% to $282 million, its lowest since the pandemic-hit July 2020, largely due to comparisons against last year's Nintendo Switch 2 launch and recent price rises for PS5 and Xbox consoles.