Archive · 23 Jul 2026
US Game Market Drops 21% After Switch 2 Hype Fades
The US video game market had a big drop in June, with sales going down by 21%.
This is the biggest drop since 2022.
The reason is that the new Switch 2 from Nintendo was very popular last year, and now people are not buying as many games and consoles.
The prices of consoles and other electronics have also gone up, which makes people spend less.
Nintendo's shares have also gone down a lot.
They even said they will raise prices in the fall because it's hard to make money with the current costs.
The US video game market declined by 21% in June, the biggest drop since 2022.
Hardware sales, including PlayStation, Xbox, and Nintendo consoles, slumped by 62%.
Software sales dropped to $3.9 billion, below levels from before the Switch 2 release.
Overall spending for the year is down 1%, despite early boosts from Switch 2 enthusiasm.
Nintendo's shares are down more than 50% from their all-time high, with price increases announced for the fall.
- Who
- US video game market, Nintendo Co., Sony Group Corp., Microsoft Corp.
- What
- A 21% decline in the US video game market in June.
- When
- June 2026
- Where
- United States
- Why
- Due to hardware price increases and a high base of comparison from June 2025 when the Switch 2 debuted.
Market Decline Due to Economic Factors
Market Decline Due to Post-Launch Lull
Reason for Decline
Market Decline Due to Economic Factors
The decline is primarily due to economic factors such as price increases on consoles and other consumer electronics.
Market Decline Due to Post-Launch Lull
The decline is a natural post-launch lull after the initial hype of the Switch 2 release.
- Market Decline
- 21%
- Hardware Sales Decline
- 62%
- Software Sales
- $3.9 billion
- Overall Spending for the Year
- Down 1%
- Nintendo's Share Decline
- More than 50% from all-time high