US VIDEO GAME HARDWARE SPENDING PLUMMETS 29%

Nintendo Switch 2 sales in the US fell more than 50% compared to July of the previous year, driving the broader industry decline, according to data from market research firm Circana. The sharp contraction reflects weak hardware demand across the sector. Rising console prices appear to be dampening purchases, with the average price per unit hitting $542—a significant barrier for consumers amid ongoing economic pressures. The July figures represent the worst performance for the hardware market since the pandemic disrupted supply chains and consumer spending patterns. The combination of price increases and reduced consumer spending suggests the industry faces headwinds as it moves toward the next generation of consoles. Circana's data underscores challenges facing major manufacturers including Sony, Microsoft, and Nintendo as they navigate pricing strategies and inventory management in a cooling market.