New research from market‑watcher Circana reveals that US consumers spent far less on gaming hardware and software in July than they have in recent years, sliding to a level barely above the 2020 pandemic trough when shelves were empty and prices were inflated.

The decline reflects a perfect storm of high inflation, lingering supply‑chain hiccups and a cautious post‑pandemic mindset. While the industry saw a boom in 2021‑22, the latest figures show a reversal, with gamers postponing upgrades and new releases feeling the pinch.

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Retailers and developers are feeling the impact, as lower sales translate into tighter margins and reduced confidence in launching big‑budget titles. However, analysts caution that this dip may be temporary, hinging on broader economic stability and the rollout of next‑gen consoles later this year.

Surveys indicate that many gamers are prioritising essential expenses over discretionary purchases, with a notable shift towards subscription services that offer a library of games for a monthly fee rather than one‑off hardware upgrades.

  • Overall hardware spend fell roughly 12% year‑on‑year, edging close to the 2020 low.
  • Console sales dropped about 15%, while PC component purchases were down 10%.
  • Game software revenue slipped 8%, with digital downloads experiencing the steepest decline.
  • Industry insiders predict a modest rebound if inflation eases and new‑gen hardware releases spark renewed enthusiasm.

Source: Eurogamer