US physical game sales drop to lowest monthly total since 1995

August 20, 2026 - 21:37

The American video game market just posted a troubling new record for physical media. According to fresh industry data, sales of boxed games in the United States fell to their lowest monthly total in nearly three decades. The July figures mark the weakest performance for physical software since tracking began in 1995.

Hardware spending did not fare much better. Consumers spent $282 million on consoles and related gear during the month, a drop of 29 percent compared to the same period last year. That is the lowest July hardware total since 2020, when the pandemic disrupted supply chains and launch schedules.

The numbers point to a continuing shift away from disc-based gaming. Digital downloads, subscription services, and cloud streaming now dominate how most players buy and access titles. Even major blockbuster releases often see the bulk of their sales come from online storefronts rather than retail shelves.

Retailers have been trimming shelf space for games for years, and the trend shows no sign of reversing. Some analysts argue that physical copies now serve mostly collectors and special edition buyers. Others note that the lack of big new hardware bundles or exclusive console variants in July also hurt spending.

The industry is not collapsing, but the landscape is clearly changing. With the current console generation entering its later years, many players are holding off on purchases. They are waiting for price cuts or the next wave of machines. Until then, the monthly totals for physical media will likely keep setting new lows.