Hardware spending also declined 29% to $282 million, the lowest July total since 2020
US physical software sales fell to $85 million in July, the lowest monthly total since Circana began tracking in 1995.
Although Sony will stop producing physical software for new games starting January 2028, PlayStation represented 32% of consumer spending on new physical games. Nintendo platforms accounted for 63% of physical game spending.
Circana's Mat Piscatella previously reported that seven PlayStation games have each sold over 100,000 physical units in the US to date, but only two games exceeded 10,000 units sold during the week ending July 11.
Hardware spending declined 29% year-over-year to $282 million, the lowest July total since 2020, when it reached $163 million.
Total hardware unit sales fell 39% year-over-year, while the average selling price rose 16% to $542 due to price increases for PlayStation, Xbox, and Nintendo Switch consoles.
The record-breaking Switch 2 launch last June continues to influence hardware sales, along with ongoing RAM and component shortages.
"[This] has significantly impacted the selling rates of both the PlayStation 5 and Xbox Series, with a price hike for Nintendo Switch 2 hardware coming on September 1," said Piscatella.
Hardware unit sales declined across all platforms: PS5 dropped 6%, Xbox Series 18%, and Switch 2 51%. Despite the sharp decline, Switch 2 led July in units sold, while PS5 led in revenue.
Circana noted that after 14 months in the market, the Switch is 11% ahead "of the time-aligned sales pace of the original Nintendo Switch."
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