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January 2025 Sees a Dramatic Drop in US Video Game Hardware Sales

Hardware sales plummet by 45%, marking the most significant drop since January 2020.

Angel Kicevski by Angel Kicevski
February 21, 2025
in News, PS5, Switch, Xbox
0

The gaming world is feeling the pinch, and January 2025 has delivered some sobering news for hardware enthusiasts. As reported by Circana, total video game sales in the United States have taken a nosedive of 15% year-over-year, but the hardware is dragging down the numbers. A staggering 45% drop was recorded, plummeting to just $205 million. Ouch!

This decline isn’t merely a blip on the radar; it’s part of a persistent trend that has rattled retailers and gamers alike. To put this into perspective, January’s figures reflect the lowest hardware spending since January 2020, when we only saw $131 million. According to Mat Piscatella from Circana, these numbers are alarming, even considering that January 2025 had four weeks compared to five in January 2024.

The significant consoles aren’t escaping this downturn either. The Nintendo Switch faces a daunting 53% decrease, which is no surprise, with rumors swirling about its successor launching this year. Xbox isn’t faring much better, with a 50% dip, while PlayStation 5 holds up somewhat better at 38%.

If there’s a silver lining here, it’s that despite falling sales, PlayStation 5 remains king of the hill regarding units sold and dollar revenue. Xbox Series is second in revenue, while Nintendo Switch still leads in unit sales.

A look at accessories reveals that while overall sales fell too (with accessories down 28%, totaling $194M), some items still shone through. The PlayStation Portal stood out as the top dollar seller, showcasing how dedicated fans are to their ecosystem. Meanwhile, gamers looking for dual functionality flocked to purchase the DualSense Wireless Midnight Black controller.

The news on the PlayStation 5 Pro isn’t sparkling either. After three months on shelves, its sales pace has lagged behind its predecessor, the PlayStation 4 Pro, a troubling sign for Sony’s latest offering.

This dramatic slump questions what lies ahead for console makers and players alike. How will companies respond? Will new titles or innovations bring people back into stores? What do you think about declining video game hardware sales this past month?

Tags: PlayStationSwitchXbox
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Angel Kicevski

Angel Kicevski

I've spent half of my life playing video games, ever since the competitive 1.6 era. Now I am happily married to Margarita Kicevski, and have two beautiful children. My goal is to deliver fresh news and updates, but most of the time I want to work on guides. Since I have rebooted this website, I am planning on making it huge. Just you wait!

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