U.S. Gaming Hardware Spending Nearly Matched the Pandemic Low in July
The 2020 comparison is striking because consoles and other gaming hardware were widely out of stock during the pandemic.
U.S. gaming hardware spending in July 2026 came close to the levels seen during the worst of the 2020 pandemic shortages. Circana’s July figures, shared by senior director and video game business advisor Mat Piscatella in a Bluesky post, put the month at its lowest July level since 2020: hardware sales fell 39% year over year, while the average system price climbed 16%.
The hardware market comparables continue to be impacted by the record-setting June 2025 launch of Nintendo Switch 2. However, the challenges extend far beyond simple cyclicality.
— Mat Piscatella (@matpiscatella.bsky.social) 2026-08-20T13:05:47.458Z
July spending approached the pandemic-era floor
The 2020 comparison carries some serious context. Consoles and other gaming hardware were difficult to find during the pandemic, with stock disappearing quickly whenever retailers received new shipments. July 2026 reaching nearly the same spending level creates a strange echo of that period, but from a much later point in the market’s cycle.
The available figures focus on overall hardware spending rather than a single console or product. That leaves the comparison as a broad snapshot of consumer demand across the U.S. market, rather than a verdict on one manufacturer’s performance.
RAM costs are feeding into console prices
Data centers are absorbing much of the available RAM supply, pushing component costs higher before those costs reach retail hardware. Piscatella connected the resulting pressure to weaker selling rates for both PS5 and Xbox Series consoles. The record-setting June 2025 launch of Nintendo Switch 2 also makes the year-over-year comparison unusually difficult, but the current problems extend beyond a normal launch-cycle effect.
The cited PS5 prices show how steep the entry point has become. The least expensive version was priced at $599.99, while the highest-end model reached $899.99. Nintendo Switch 2 hardware is scheduled for a price increase on September 1, 2026, giving shoppers another reason to think twice before buying a system. Combined with broader economic concerns, those prices make a new console purchase harder to fit into a household budget.
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