US Video Game Hardware Sales Plunge in November
â–Ľ Summary
– US video game hardware spending in November fell 27% year-over-year to $695 million, the lowest November total since 2005.
– The number of hardware units sold (1.6 million) was the lowest for a November since 1995, despite a record high average price of $439 per unit.
– Higher console prices contributed to the trend, with recent price hikes for the PlayStation 5 and Xbox Series leading to an 11% increase in the average price from 2024.
– PlayStation 5 was the top-selling hardware in both units and dollars for the month, a first since the launch of the Nintendo Switch 2, which ranked second.
– *Call of Duty: Black Ops 7* was November’s best-selling game, but the franchise saw a double-digit sales decline compared to November 2024.
The video game hardware market in the United States experienced a significant downturn this past November, with consumer spending dropping sharply compared to the previous year. According to the latest data from market research firm Circana, total spending on gaming consoles and related hardware reached only $695 million for the month. This figure represents a steep 27 percent decline year-over-year and marks the lowest November spending total since 2005. In terms of units sold, the situation was similarly bleak, with approximately 1.6 million hardware units sold, the lowest November unit volume since 1995.
A major factor contributing to this slump is the increased cost of new consoles. Both the PlayStation 5 and Xbox Series families celebrated their fifth anniversaries in November, but prospective buyers faced higher price tags following manufacturer price hikes earlier in the year. This led to a record-breaking average selling price for new hardware, which Circana reported hit $439 for the month. This represents an 11 percent increase from 2024 and nearly doubles the average price from November 2019. The rising cost is likely discouraging potential buyers, especially during a period traditionally driven by holiday gift shopping.
Despite the overall market contraction, the PlayStation 5 emerged as the month’s top-selling hardware platform in both unit sales and dollar revenue. This was the first time it achieved this dual victory since the launch of the Nintendo Switch 2. The Switch 2 itself secured the second position in both categories. The rankings revealed an interesting split for third place: the Nex Playground console ranked third in units sold, while the Xbox Series family of consoles took third place in terms of dollar sales.
On the software side, Call of Duty: Black Ops 7 was the best-selling game of November. However, the broader Call of Duty franchise saw a concerning trend, with full-game dollar sales declining by a double-digit percentage compared to November 2024. This softening demand may have influenced a recent strategic shift by publisher Activision, which announced it would alter its release schedule to avoid launching major Modern Warfare and Black Ops titles in consecutive years. This move suggests an effort to maintain franchise vitality and consumer interest amid changing market dynamics.
(Source: The Verge)
