US Physical Video Game Sales Falls to Just $1.5 Billion in 2025 - Sales
by William D'Angelo , posted on 02 March 2026 / 2,155 Views
New physical video game sales have been on the decline for nearly two decades and in the US reached just $1.5 billion in revenue in 2025. This is an all-time low since tracking began in 1995, according to a report from Senior Director and Video Game Industry Advisor at Circana Mat Piscatella.
The market for new physical video game sales peaked in 2008 with $11.6 billion. Sales have since declined every year with 2024 seeing the biggest decline at 28 percent year-on-year. Sales dropped 11 percent in 2025 compared to the previous year.
With $11.6 billion generated in 2008 and $1.5 billion in 2025 that means new physical video game sales have fallen 87 percent in the last 17 years.
"So, in 2025 US new physical video game spending fell 11% compared to 2024," said Piscatella. "This is the lowest rate of decline since 2021 (-8%), and far better than the -28% recorded in 2024. However, spending on new physical video games also reached only $1.5 billion in 2025, an all-time tracked (since 1995) low.
"So yes, the rate of decline slowed. But that's mostly because we're nearing the bottom, and the launch of Switch 2 helped stabilize. There's definitely something to be said for the desire to return to analog and non-connected devices, especially for Gen Z. But 'dramatic shift'? Don't see it.
"The peak for US new physical video game spending was 2008, at $11.6 billion. New physical video game spending has declined every year since. The sharpest decline was in 2024 (-28% vs YA), followed by 2012 (-22%)."
A life-long and avid gamer, William D'Angelo was first introduced to VGChartz in 2007. After years of supporting the site, he was brought on in 2010 as a junior analyst, working his way up to lead analyst in 2012 and taking over the hardware estimates in 2017. He has expanded his involvement in the gaming community by producing content on his own YouTube channel and Twitch channel. You can follow the author on Bluesky.
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It's kind of hard to buy physical when physical isn't available.
Nintendo has pivoted to eWaste game-key-cards.
Xbox just isn't releasing games on Physical Media anymore.
Playstation just hasn't excited on the physical front either.
My Xbox Series X and Playstation 5 collections are smaller than my WiiU collection due to a lack of proper physical releases.
And I doubt my Switch 2 collection will ever match my Switch 1 collection.
If I am forced to go digital-only, then I will stick to PC, because what's the point in owning a console games library that is stuck to one device when I can run PC on multiple form factors (Desktop, Laptop, Handheld)
There's a lot of games that are properly on Disc as per Doesitplay.org. But otherwise I completely agree with what you just said. I'll definitely become a "wait for a deep sale" style PC gamer once everything is digital. Too big of a backlog already and digital games almost never go out of stock. I have physical games I bought a decade ago and still haven't played.
I won't go PC. I'll just stop completely. You don't think my massive collection of retro consoles and games spanning the 70's-00's will keep me satisfied until the end of my days? Those are the most innovative, ground-breaking games ever made. More than enough to fulfill my needs when/if these guys stop producing physical media.
I mean, I have a PC collection spanning 30 years... So for me, I am lucky that I have been able to bring that game library with me through the generations and across all my devices.
For example... I bought Half Life in 1998 which was 27 years ago on CD-Rom.
Then Steam launched in 2003, 23 years ago and my CD-Rom key activated on Steam and also became a digital copy.
Then I have brought that game forwards on Netbooks, Notebooks, Desktop PC's, Tablets, handhelds using that same original CD-Rom license that I bought 27 years ago... Digitally.
Console game libraries are far more fragmented, I can not run all my original Xbox or Xbox 360 games on my Xbox One or Xbox Series X.
Likewise I can't run all my 3DS and WiiU games on Switch or Switch 2.
And I can't run PSP, Vita or PS3 games on Playstation 4/Playstation 5.
Many of the games ended up being re-released for another chunk of money.
Thankfully the last console generation has been extremely backwards compatible due to a lack of paradigm shifts in hardware, but it's never guaranteed going forwards.
PC Gaming has been the best forwards/backwards compatible ecosystem that has paid dividends. It doesn't matter if my new PC doesn't have a CD Drive anymore, I can just activate my physical copies... Digitally. And then download the game on any device.
If they stop physical releases they will stop discounts on digital store and you will have to buy 70$-80$ games only. That day i will quit gaming.
They will 100% dare
Landscape is far too competitive for that. It isnt 2010 anymore. Indies and smaller studios are putting out compelling content at a much faster clip than bigger publishers can keep up with. The tide is turning far too fast to use draconian tactics.
Why would they do that? Games go on sale because they want to capture more of the market than they can get a full price. It's a profit maximisation tool, not charity.
Tell that to nintendo
They are making different economic choices based on the nature of their (more closed)market conditions.
Regardless Nintendo games sell way more physical games than anyone else, so that goes completely against the original point that no more physical would mean no sales. It seems games that sell mostly digital or are all digital actually go one sale more than games that sell heavily physical.
You mean to say that, with console makers offering digital only version of their consoles at a better price, in a difficult market; and with no PC publisher offering games on DVD format and the total dominance of Steam, that somehow, utterly paradoxically, physical games are on the decline?
This would not have happened if publishers and console makers actually wanted to give customers a choice. This is not a change in buying patters out of convenience, but one that has been forced on customers. Steam established the idea, and now console makers are doing their utmost best to kill the physical format - precisely because it allows them to control product pricing much better than before, cutting out distribution and sales point profit altogether while pushing game prices up.
No point in buying physical when digital exists.
There are many, actually, but I'll list just one. We'll do it in challenge form.
I want you to go out right now, and legally buy Crazy Taxi 1... but the original, non-altered version. Original music, original everything. Go on. Give it your best shot. After you get done and come back empty, you can come over to my place and play it on my Dreamast with me via the real, physical disc. And while we're playing, we can come up with yet another challenge for you to fail at or... you can just admit that physical does have benefits over digital, and you were just misinformed from the start. Your choice.
So many games aren't even properly on a physical format anymore. Fact is 31% of PS5 games are literally a coaster with a DL key on them (Source: Doesitplay.org). And its much worse for Switch 2 and Xbox Series.
Physical isnt even physical anymore,or if you just care only about a plastic case
Tariffs eating those margins too. We need to Remaster our own reality. I vote to reform Bluepoint.
Yeah, can’t say this is all too surprising— it’s not like Roblox is getting any smaller. There’s also the fact that PS5 offers only one SKU which plays discs w/o the need for add-ons, and Xbox relying on GPUltimate and Digital Only hardware SKUs.
