U. S. Video Game Market Faces Tough November
A Difficult Month for the Industry
November 2025 proved to be a challenging month for the U. S. video game market. Sales of physical games and hardware plummeted to their lowest point since 1995. This decline was widespread, affecting hardware, accessories, and console spending. Overall, spending dropped by 4% compared to the same month last year, totaling $5. 9 billion.
Hardware Sales Hit Hardest
Hardware sales were particularly affected, with a 27% drop year-over-year. This marks the lowest November total since 2005. Unit sales also reached a low, with only 1. 6 million units sold, the worst November for hardware sales since 1995.
Console-Specific Declines
- Xbox Series sales fell by 70%
- PS5 sales dropped by over 40%
- Nintendo Switch and Switch 2 sales declined by over 10%
The high cost of video game hardware is a major factor in this decline. The average price per unit reached an all-time high of $439, up 11% from last year. The Xbox saw an even steeper increase, with its average price per unit rising by over 30%.
Nintendo Switch 2 Underperforms
Despite being a new console, the Nintendo Switch 2 is not selling as well as expected. While it is the fastest-selling video game hardware in U. S. history, its sales were lower than the original Switch during its first November. The average price paid for a new Nintendo Switch in November 2017 was $309, which is about $405 in today's dollars. The Switch 2, on the other hand, cost $486 in November 2025. This price difference could be why the Switch 2 is not selling as well as the original Switch.
Bright Spot: NEX Playground
One bright spot in the market is the NEX Playground. It was the third best-selling piece of video game hardware in November by unit sales. This affordable, family-friendly device is doing well, with strong retail placement and successful marketing efforts. However, it is now largely sold out, with secondary market prices soaring.
Software Sales Struggle
Software sales are also struggling. While overall content spending was up 1% year-over-year, physical software sales dropped by 14%. This is the worst November for physical software sales since 1995. Call of Duty: Black Ops 7 was the best-selling game of the month, but it saw a double-digit percentage decline in full game dollar sales compared to last year.
Possible Reasons for the Decline
The decline in sales could be due to several factors:
- Consumers may be waiting for better deals closer to the holidays.
- Economic factors and the high cost of consoles could also be pushing people to hold off on gaming purchases.
If the trend continues, it could have serious implications for the gaming industry.
