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Outbyte PC Repair FREEClear out junk files and repair common Windows errorsFree Scan →Outbyte Driver Updater FREEScan for outdated or missing drivers - takes under a minuteDriver Scan →Not across the board. Circana forecast that total U.S. video game spending would rise 3% in 2026, with Nintendo Switch 2’s second year among the contributors. But the latest monthly data available here—July 2026—showed U.S. spending on console hardware down 29% year over year, with hardware units down 39%. The forecast covers hardware, games, and accessories; it is not evidence that console sales are currently rising, or that tariffs alone are driving spending.
What does “spending is up” mean?
There are two different measures behind the claim: an annual forecast for the U.S. video game industry as a whole, and monthly results for console hardware. They point in different directions because they cover different periods and categories.
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| Measure | Figure | What it covers |
|---|---|---|
| 2025 actual | $60.7 billion, up 1.4% from 2024 | Circana’s U.S. consumer spending on video game hardware, content, and accessories. |
| 2026 forecast | $62.8 billion, forecast up 3% | Circana’s February 11, 2026 forecast for the same combined U.S. categories—not a console-only result. |
| July 2026 actual | $282 million, down 29% year over year | Circana’s U.S. video game hardware spending for that month. |
Circana named the Switch 2’s second year as one expected contributor to the industry-wide forecast, alongside anticipated software and subscription engagement. The firm also said the Switch 2 launch had offset hardware-spending declines elsewhere. That is Circana’s explanation, not a quantified estimate of how much forecast growth depends on the console. Its outlook described a “stellar slate of software and strong subscription engagement” as additional reasons to expect an exciting year. Circana’s 2026 outlook
Why can hardware spending fall while the average price rises?
Spending in dollars depends on both the number of consoles sold and their average selling price. In July 2026, Circana reported that U.S. hardware unit sales fell 39% year over year, while the average selling price rose 16% to $542. Higher average prices did not make up for the lower unit volume: hardware dollars were down 29% to $282 million.
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Console unit sales also declined year over year that month: PlayStation 5 fell 6%, Xbox Series fell 18%, and Switch 2 fell 51%. The Switch 2 comparison is especially sensitive to timing: July 2025 was closer to its launch period, creating a demanding year-over-year comparison. Circana said the console’s sales pace over its first 14 months was still 11% ahead of the original Switch at the same point in its lifecycle. A steep monthly decline and a stronger matched-lifecycle pace can both be true. Circana’s July 2026 results
How large is the Switch 2’s contribution?
Nintendo reported worldwide lifetime sales of 23.68 million Switch 2 hardware units and 58.17 million software units as of June 30, 2026. Those company-reported global totals show the console has a substantial installed base, but they are not U.S. retail spending figures and do not establish how much of Circana’s U.S. forecast comes from Switch 2. Nintendo’s hardware and software sales data
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For shoppers, Switch 2 is the physical product most directly tied to this market story. Its popularity does not mean every console category is growing, and a market forecast is not a reason by itself to buy a console. For accessories, Circana reported that U.S. spending on all accessories fell 6% to $178 million in July, even as the broad cases-and-organizers category rose 36%. That category figure is not specific to Switch 2 accessories; check compatibility on a product listing before buying.
Are tariffs making consoles more expensive?
Tariffs are one part of Nintendo’s stated cost pressures, but the company has not said they alone caused a console price change or a rise in spending. In its May 2026 results Q&A, Nintendo president Shuntaro Furukawa said the company’s fiscal-year forecast incorporated an estimated combined impact of approximately 100 billion yen from rising memory and other component prices plus tariffs. Nintendo did not disclose the calculation’s detailed breakdown.
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Furukawa also said the hardware price change was not due to one specific factor. Nintendo cited exchange rates and oil prices as well as component costs and tariffs, and noted that conditions differ by region. His explanation was: “This change in hardware pricing was not due to any one specific factor.” Nintendo’s May 2026 financial-results Q&A
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What might higher costs mean for players?
Circana’s Future of Video Games consumer research, cited in its February 2026 forecast, measured stated intentions if costs increased due to tariffs and/or other factors. It was not a record of what consumers later did:
- 38% said they would buy fewer full-price games at launch.
- 34% said they would wait longer for sales.
- 27% said they would spend more time on free-to-play games.
These responses concern possible cost increases and consumer intentions; they do not show that tariffs caused a particular price increase or that spending behavior has already changed. Circana’s 2026 outlook
Quick Recap
How to read the numbers
- Forecast versus result: $62.8 billion is a Circana forecast for 2026, while $282 million is a reported U.S. hardware result for July.
- Industry versus hardware: The forecast combines hardware, content, and accessories; the monthly decline is for hardware alone.
- Dollars versus units: July spending fell less sharply than units because average selling prices rose.
- Year over year versus lifecycle: Switch 2 unit sales were down 51% from July 2025, but its first-14-month pace was 11% ahead of the original Switch at the comparable point.
- U.S. versus worldwide: Circana’s monthly figures describe the U.S.; Nintendo’s lifetime hardware and software totals are worldwide.
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
