US Hardware Spending in July Drops to Levels Not Seen Since 2020 Pandemic Component Shortages

New data from industry analysts at Circana has revealed a significant downturn in consumer spending on gaming hardware and software within the United States market for July. According to the latest report, all console platforms experienced a decline in unit sales compared to July of last year. Consequently, hardware spending dropped by 29 percent, falling to a low that closely approaches the figures seen in July 2020 during pandemic-fueled component shortages. Analysts note that while hardware is currently widely available, high prices appear to have achieved the same dampening effect as past supply shortages.

The report also highlighted historic lows in physical software sales. Spending on new physical games dropped to an all-time low not seen since tracking began in 1995. Distribution of spending on new physical games so far this year indicates that 32 percent went to PlayStation, while 63 percent went to Nintendo. Notably, the best-selling game in July was the Call of Duty: Black Ops 2 port for PlayStation 4 and PlayStation 5, which arrived in the middle of the month. Combined sales for the Black Ops ports are estimated at 11 million copies, far outpacing other titles like Halo: Campaign Evolved, which claimed the number six spot.

Overall combined spending across games, hardware, and accessories fell by 10 percent in July compared to the previous year, driven by declines across PC, console, and mobile sectors. Subscriptions remained the sole category to see improvement, growing by 6 percent. Observers suggest that console owners are exercising caution and continuing to play established titles rather than purchasing new releases.