Hardware Sales Decline: A 30-Year Low in November
In a shocking turn of events, hardware sales and physical game spending in the US have reached their lowest point in 30 years this past November. According to Circana’s latest data, only 1.6 million units of video game hardware were sold, marking a significant decline from previous years and the lowest total since 1995. With hardware spending dropping 27% year-over-year to $695 million, it’s clear that the gaming market is facing unprecedented challenges.
The average price for a new unit of video game hardware has hit an all-time high of $439, which many believe is a key factor contributing to the decline in sales. Traditionally, November is a peak month for hardware sales due to Black Friday and holiday shopping, but this year, even the best-selling consoles, like the PlayStation 5 and Nintendo Switch 2, couldn’t offset the overall downturn. Furthermore, physical software sales also fell by 14%, indicating a broader shift in consumer behavior towards digital purchases.
As we look ahead, the question remains: how will console manufacturers adapt to these market pressures? With rising component costs and tariffs, it seems unlikely that prices will drop anytime soon, potentially leading to a more challenging landscape for dedicated gaming devices. Will we see a resurgence in hardware sales, or is this the new norm for the gaming industry?
Original source: https://www.videogameschronicle.com/news/hardware-sales-and-physical-game-spending-in-the-us-just-had-the-worst-november-in-30-years/