The video game hardware market is experiencing a downturn, with sales declining by nearly half their usual rate. According to Circana, the industry analyst group, this slump may be attributed to changing attitudes towards gaming consoles and a lack of compelling new software releases. The Nintendo Switch 2’s upcoming release is expected to boost sales, but for now, gamers are expressing concerns about the high cost of the hobby.
Circana recently reported a significant drop in physical game sales, with digital purchases taking over as consumers prefer the convenience of immediate ownership. This trend has led to lower-than-expected hardware sales, with the January total being the lowest since 2020’s $131 million. Despite this, software sales have not kept pace, with a 12% decrease in content spending.
Some gamers believe that as long as gaming remains too expensive for their comfort level, sales will continue to fall. However, new projects are expected to turn things around for the industry soon. The release of the Nintendo Switch 2 and Grand Theft Auto 6 are anticipated events that could impact sales and bring a resurgence to the market.
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Source: https://gamerant.com/video-game-hardware-console-sales-drop