US Game Market Sinks 21% After Switch 2 Glow Fades, Circana Says
The US video game market declined by 21% in June, an industry researcher estimates, marking the single biggest monthly drop since 2022 after hardware price increases took a toll on gaming demand.
The US video game market declined by 21% in June, an industry researcher estimates, marking the single biggest monthly drop since 2022 after hardware price increases took a toll on gaming demand.
The sharp fall in sales also reflected a high base of comparison from June 2025, when Nintendo Co. debuted the Switch 2, according to Circana. Hardware sales, including Sony Group Corp.’s PlayStation, Microsoft Corp.’s Xbox and Nintendo’s console, slumped 62% last month, according to the latest figures. The dramatic reversal also affected software, as content purchases dropped, to $3.9 billion, below their level from the year before the Switch 2.
Kyoto-based Nintendo, whose shares are down more than 50% from their all-time high last summer, has struggled to sustain investor excitement as the surging cost of memory and other components cuts into profits. The company in May announced a global price increase for the fall, acknowledging the challenges to profitability from a strained supply chain.
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