Game Sales: Crash 27% Now

Video Game Sales Plunge 27% in November 2025: Worst Drop Since 1995 Despite Switch 2 Launch

November 2025 delivered a shocking blow to the video game industry, with U.S. console sales plummeting 27% year-over-year to the lowest levels since 1995, even as the highly anticipated Nintendo Switch 2 hit the market. This historic downturn raises tough questions about rising prices, shifting consumer habits, and the future of dedicated gaming hardware.

Hardware Sales Hit 30-Year Low

According to market research firm Circana, U.S. video game hardware spending fell to $695 million in November 2025, a 27% decline from the previous year. Unit sales dropped sharply to just 1.6 million consoles, marking the weakest November performance in roughly 30 years. This figure harkens back to the mid-1990s era of the SNES, Sega Saturn, and early PlayStation systems.

Every major platform felt the pain. PlayStation 5 sales declined by more than 40% year-over-year. Xbox Series X/S fared even worse, with a staggering 70% drop in units sold. Nintendo's combined Switch and Switch 2 sales dipped around 10%, a relatively milder fall but still notable during the holiday launch window.

Average Console Prices Soar to Record Highs

Soaring prices emerged as a key culprit behind the slump. The average selling price for video game hardware climbed 11% to $439 per unit, the highest ever for a peak buying month. Xbox consoles saw average prices rise over 30%, deterring budget-conscious shoppers.

The Nintendo Switch 2, despite becoming the fastest-selling console in U.S. history, underperformed compared to the original Switch's debut November. Higher price points and limited discounts likely played a role, as consumers weighed the cost against alternatives like PC gaming or mobile devices.

• Global tariffs and production costs drove up manufacturing expenses.
• Multiple price hikes on Xbox Series X/S throughout 2025 squeezed demand.
• Potential RAM and memory shortages threaten further increases in 2026.

Physical Game Sales Follow Suit

Software sales mirrored the hardware woes. Physical game dollar sales fell 14% year-over-year, the worst November since 1995. Even blockbuster titles struggled. Call of Duty: Black Ops 7 topped the charts but saw double-digit declines in full-game revenue compared to the prior year.

Subscription services offered a silver lining, with spending up 16%. Overall industry spending dropped 4% to $5.9 billion, reflecting declines across hardware, accessories, and physical media.

Platform Breakdown and Emerging Trends

PlayStation 5 led in unit sales for November 2025, followed closely by the Switch 2 in the top three. Xbox ranked high in dollar sales due to premium pricing but lagged in volume. New entrants like the NEX Playground made surprising inroads, signaling shifting competition.

Multi-platform strategies and digital dominance are widening the gap between hardware and content sales. Gamers increasingly opt for cloud gaming, subscriptions, and cross-play, reducing the need for new consoles every cycle.

What Lies Ahead for the Gaming Industry

The November 2025 slump underscores deeper challenges: inflation-weary consumers, maturing hardware cycles, and digital disruption. While the Switch 2 showed resilience, no platform escaped unscathed. Publishers and manufacturers must innovate with affordability, exclusive content, and backward compatibility to reignite demand.

In summary, this downturn signals a pivotal moment. The industry that thrived on holiday launches now grapples with economic headwinds and evolving playstyles. Watch for holiday recovery data and 2026 pricing shifts to gauge if relief is in sight.