The Nintendo Switch 2, released last June, reversed a long-standing trend in the United States.
Due to the rise of digital game sales, sales of physical games have been declining for more than a decade. After it was revealed that Grand Theft Auto VI will be released in a “code-in-a-box” format in November, before the disc version is reportedly set to be released later this year, physical sales are expected to decline even further (we covered this in today’s news). However, thanks to the Nintendo Switch 2, spending on physical games in the United States is projected to grow year over year between 2025 and 2026 for the first time since 2009.
US new physical video game software spending. 12 months ending May 2007-2026:
— Mat Piscatella (@matpiscatella.bsky.social) June 25, 2026 at 1:30 PM
Mat Piscatella, managing director and gaming industry analyst at Circana, reported this. Piscatella shared a chart showing the decline in spending on physical games in the United States from May 2007 to May 2026. The decline is clear, but at the very end of the chart, the bars for 2025 and 2026 appear identical — they are so close together that one might actually be higher than the other. Piscatella confirmed to GamesIndustry that the 2026 figures are indeed better than those for 2025. Overall spending on physical games increased by 3% across console platforms, representing a $1.6 billion increase. Does this mean that physical sales will start to rebound? No, you don’t have to be an analyst of Piscatella’s caliber to figure that out.
“This is the Nintendo Switch 2 bump. Physical software sales on Nintendo platforms are up around 26% compared to a year ago but are still down from the period ending in May 2024. All other ecosystems continue to drop by double-digit percentages. It’s very likely to be a temporary blip. At some point, it will all bottom out — perhaps we’re getting there now — until console manufacturers stop producing units with physical drives,” Piscatella said.
Nevertheless, it’s worth appreciating disc releases that include the full game—we could use those at any time.
Source: WCCFTech
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