Physical Video Game Sales In 2025 Hit New 30-Year Low Point

"U.S. physical video game sales in 2025 amounted to roughly $1.5 billion, the lowest "all-time tracked" figure in 30 years, per a report from Circana's Mat Piscatella. While the figure on its own seems grim, there is a silver lining, as the 11-percent drop in physical video game spending from the year before also marks the "lowest rate of decline since 2021.""

"According to Circana, U.S. "video game hardware, content, and accessories" sales in 2025 reached $60.7 billion, a 1.4 percent total increase over 2024, and just shy of the $61.7 billion record set in 2021. So, if 2026 is set to be a record high for U.S. video game consumer sales, yet 2025 was the lowest recorded point in physical video game media sales since 1995, what's the disparity here?"

"Circana's report seems to indicate that shifts in consumer behavior, including an "accelerated adoption of cloud gaming" and the ever-rising popularity of subscription-based services like Xbox Game Pass and the PlayStation Plus Game Catalogue, may be to blame."

U.S. physical video game sales in 2025 reached $1.5 billion, marking the lowest figure in 30 years of tracked data. However, the 11-percent decline represents the slowest rate of decrease since 2021. Despite physical media struggles, total U.S. video game hardware, content, and accessories spending reached $60.7 billion in 2025, a 1.4 percent increase over 2024. Circana forecasts 2026 could achieve record-high consumer spending. The disparity between declining physical sales and growing overall spending reflects shifting consumer behavior toward cloud gaming and subscription services like Xbox Game Pass and PlayStation Plus Game Catalogue. When adjusted for inflation, the decline appears more severe, as 113 percent inflation occurred between 1995 and 2025.

Read at Kotaku