US spending on new physical video game software reached $85 million in July 2026, the lowest July figure recorded since Circana began tracking the market in 1995. The total marks a difficult month for boxed games and cartridges, while leaving a clear difference between the platforms that still account for the remaining physical spending.
In brief
- US physical video game software spending reached $85 million in July 2026, the lowest July figure recorded since 1995.
- Nintendo platforms accounted for 63% of year-to-date US spending on new physical games, compared with 32% for PlayStation.
- Sony will end production of physical discs for new PlayStation games from January 2028, prompting debate about preservation and ownership.
The figure arrived as Sony prepares to stop producing physical discs for new PlayStation games from January 2028. New PlayStation releases will be available through the PlayStation Store and at retailers in digital-only formats. That change concerns future disc production, rather than establishing what will happen to every physical PlayStation game already available to buy or own.
Nintendo leads the remaining physical market
Nintendo platforms represented 63% of US consumer spending on new physical software so far in 2026. PlayStation accounted for 32% over the same period. The split shows that physical formats are not disappearing at the same pace across every console ecosystem.
For players who still choose cartridges or discs, platform selection remains central to the experience at retail. Nintendo holds the largest share of spending within this part of the market, while PlayStation still represents nearly a third of year-to-date spending on new physical games. The figures do not show what share physical software represents of all US game spending in 2026, so they cannot define the size of the overall games market.
The current picture is instead a narrow but significant one: July produced an exceptionally low total for physical software, and Nintendo captured the largest portion of spending on new boxed releases. The changing balance between formats remains one of the practical issues shaping the wider Video Games market.
A low July does not settle the format question
The July total documents spending on physical software, not a universal verdict on how every player wants to buy games. It does not prove that consumers as a whole want to abandon discs or cartridges. It also does not establish why one format is chosen over another for an individual release.
What it does show is that physical spending reached a new July low at a moment when one of the major platform holders has set an end date for new PlayStation disc production. The reported $85 million July total provides context for the debate without resolving the concerns raised by players.
Sony’s decision has sharpened preservation concerns
Sony has framed its move toward digital-only releases for new games as a response to changing consumer preferences. The company has also said the end of new disc production is not affecting its current business and that it does not expect a negative effect in the future.
The announcement has nevertheless prompted online petitions and social-media reactions focused on game preservation and ownership. Those responses reflect concerns over a future in which new PlayStation releases are distributed digitally, even though the available sales data does not demonstrate that any particular consequence will follow for prices, ownership or preservation.
The UK Digital Entertainment and Retail Association criticised the decision as “a triumph of corporate convenience over consumer choice.” The statement is part of an ongoing argument about format availability, rather than a conclusion that can be drawn from the July spending total alone.
Console purchases also fell during July
Physical software was not the only weak point in the US console market. Hardware unit sales fell 39% compared with July 2025, while the average selling price of a new video game hardware unit rose 16% to $542. The market comparison was affected by the record-setting June 2025 launch of Nintendo Switch 2, while higher hardware prices also affected selling rates.
Those results should not be treated as a single explanation for the decline in physical game spending. They describe a month in which fewer console units were sold while physical software reached its lowest recorded July total. The broader July market data places both developments in the same period without proving that one directly caused the other.
For readers deciding how to buy a new game, the available choices will continue to depend on the platform, the title and the format offered at release. Nintendo’s share of physical spending shows that boxed games and cartridges still have a measurable place in the market, even as Sony’s planned shift gives the format debate a more immediate deadline.
Featured image. Source: Pexels. Credit: Corentin Detry. License: Pexels License.
