U.S. spending on new physical video games has risen 5 per cent year over year so far in 2026, an unexpected result driven largely by the growing number of game-key cards and the arrival of Switch 2.
Circana data shows spending on game-key cards increased by 631 per cent. That surge more than offset a 3 per cent decline across other new physical software.
Why game-key cards changed the result
The sharp increase reflects a much larger selection rather than a sudden return to traditional disc and cartridge sales. Circana’s Mat Piscatella said 10 titles were released as game-key cards last year, followed by 54 additional game-key-card titles this year.
New physical software sales are showing growth for the first time in more than a decade, primarily because of Switch 2 and publishers making greater use of game-key cards.
Switch 2 owners appear more willing to purchase physical releases than players on other consoles, while the platform has also expanded the number of physical products counted in the market. The result is a positive headline for physical software, although game-key cards are a significant part of that improvement.
For readers interested in the wider enthusiast market, RETROCADE’s arcade news and industry coverage looks at how changing formats continue to affect gaming.
August game sales and market performance
Overall content spending in August fell 10 per cent, mainly because mobile spending dropped sharply. Console content was also down, while PC content and subscription spending increased. Total spending reached $4.3 billion, down 9 per cent year over year, with stronger PC content partly cushioning declines in mobile and console content.
NBA 2K27 led August’s game sales, followed by Madden NFL 27, Marvel Tokon: Fighting Souls, Madden’s Kickoff Bundle and Star Wars: Zero Company. NBA 2K27 also became the third best-selling game of 2026 so far.
Elden Ring climbed from 41st in July to seventh in August after its Switch 2 release. Marvel’s Spider-Man 2 rose from 31st to 11th, helped by interest surrounding the recent film. Kingdom Hearts Integrum Masterpiece moved from 159th to 26th following major D23 announcements and a Steam sale.
Indie title Big Walk also entered the top 10, taking eighth place.
U.S. top 10 games for August
- NBA 2K27 — new
- Madden NFL 27* — new
- Marvel Tokon: Fighting Souls — new
- Kickoff Bundle (2026)* — new
- Star Wars: Zero Company* — new
- Halo: Campaign: Evolved* — sixth last month
- Elden Ring — 41st last month
- Big Walk* — new
- Mario Kart World* — 19th last month
- Splatoon Raiders* — seventh last month
Hardware sales remain under pressure
Accessories spending increased 3 per cent, but total hardware spending declined 3 per cent. PlayStation 5 dollar sales grew 17 per cent, while Xbox and Switch 2 spending each fell 13 per cent, cancelling out that gain.
Unit sales were considerably weaker than the dollar figures suggest. Hardware unit sales dropped 15 per cent year over year, the lowest total for an August since 2013. PlayStation unit sales fell 11 per cent, also reaching their lowest August result since 2013. Xbox declined 31 per cent, its weakest August since 2020, while Nintendo fell 15 per cent.
The average price of a new hardware unit was $541. That distinction matters: higher prices can lift dollar spending even while fewer consoles are sold.
Anyone weighing up a dedicated cabinet rather than current console hardware can explore RETROCADE’s arcade machine buying guide, browse the available arcade machines, or consider a space-saving bartop arcade.
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