December 17, 2025
Even With Switch 2 Momentum, U.S. Video Game Hardware Sales Fall to 30-Year Low
The U.S. video game hardware market delivered a surprising result in November 2025. Despite the successful launch and strong early performance of the Nintendo Switch 2, overall console sales fell to levels not seen since the mid-1990s, highlighting broader challenges facing the industry.
🎮 Hardware Sales Reach a Historic Low
According to recent market data, only about 1.6 million video game consoles were sold in the U.S. during November 2025. That figure represents the lowest November hardware sales total in roughly 30 years, dating back to an era dominated by systems like the SNES, Sega Genesis, and the original PlayStation.
Key takeaways from the report include:
- Total U.S. hardware spending dropped to approximately $695 million.
- This marked a 27% year-over-year decline compared to November 2024.
- Hardware spending reached its lowest point in nearly two decades.
These numbers underscore how sharply the market has cooled, even during what is traditionally one of the strongest months for console sales.
🕹️ Switch 2 Success Couldn’t Offset Market Decline
The Nintendo Switch 2 remains a bright spot for the industry. Since launching in June, the console has sold more than 10 million units globally in its first four months. However, that success was not enough to reverse broader market trends in the U.S.
Factors that may have limited holiday momentum include:
- A $449 launch price that some consumers viewed as steep.
- The absence of a dedicated Switch 2 holiday bundle.
- Discounts focused on first-party games rather than hardware incentives.
While backward compatibility with original Switch titles adds value, many shoppers appeared more responsive to competitors offering lower-priced console bundles.
đź’° Competitive Pressure and Platform Performance
In November 2025 U.S. sales rankings:
- PlayStation 5 led console unit sales.
- Switch 2 placed within the top three for units sold.
- Emerging platforms like the NEX Playground made a strong showing.
- Xbox Series X/S ranked high in dollar sales but saw major declines in units.
On the software side, Call of Duty: Black Ops 7 finished as the month’s best-selling game, even though overall software spending declined compared to the previous year.
📉 Rising Costs Impact Console Buyers
The outlook grew even more challenging for certain platforms. Xbox console sales reportedly fell by roughly 70% year-over-year in November, marking a historic low for the brand during that month.
Contributing factors include:
- Rising production costs tied to global tariffs.
- Multiple price increases on Xbox Series X/S consoles throughout 2025.
- Industry-wide concerns surrounding memory and RAM shortages.
These pressures may not be limited to Xbox. Increased DRAM pricing could also impact Switch 2 costs in 2026, potentially leading to higher retail prices across the market.
🧠Final Thoughts
November’s numbers paint a clear picture: even strong individual console launches are struggling to overcome broader economic and pricing challenges. While platforms like the Switch 2 continue to find success, rising hardware costs and cautious consumer spending are reshaping how and when players invest in new consoles.
As the industry moves forward, pricing strategy, value-driven bundles, and long-term affordability may become just as important as innovation itself.