Physical game sales in the US hit an all-time low

According to Circana analyst Mat Piscatella, physical game spending in the US totaled just $1.5 billion in 2025 – the lowest figure recorded since tracking began in 1995. Physical games still generate revenue, but the disc-and-cartridge market is in steady decline with no real signs of a turnaround on the horizon.

Digital sales are claiming a larger slice of game spending every year, and it's no secret that platform holders like Sony and Microsoft would rather have players shopping through their own digital storefronts. Digital game libraries are a powerful tool for keeping users tied to a specific platform – especially now that you can buy a console without a disc drive at all.

Companies also cut costs by manufacturing and shipping fewer physical units and the packaging that goes with them. The trend is global: a report on the UK physical game market from last year painted a similarly bleak – if not worse – picture.

There is one bright spot in the latest data: the pace of decline wasn't as sharp as you might expect. Piscatella says spending fell 11% in 2025 – the smallest drop since 2021 and a notable improvement over 2024, when the figure plunged 28% year-on-year.