New data shows that consumer spending on gaming hardware and games themselves have dropped across the US market in July. While usually a quiet period for the industry, the new data indicates that things are looking like they've taken a bit of a nosedive to pandemic-era sales figures, when no one could get their hands on a console.
The new research, coming from Circana (via Eurogamer), tells us that gaming hardware spending dropped by 29%, with all console platforms selling fewer units year-over-year. This decline might not sound too bad, but putting it into wider perspective shows that the hardware spending figures are now almost as low as they were in July of 2020. Back then, barely anyone could buy a console because they were getting scalped left right and centre. Now, it seems barely anyone is buying a console because they're so expensive.
Price hikes have meant that this generation will be the first which ended up more expensive than it was to buy at launch. The blame isn't to be laid on platform owners for this, as the demand driven by AI has meant components across the tech world are becoming vastly more expensive to buy.
Outside of consoles, anyone hoping for physical media to stick around might want to shut their eyes and ears, as apparently July saw an all-time low for the amount of money spent on physical software. New physical game sales hit their lowest point since records began in 1995.
