Physical Video Game Copies Face Extinction Risk as Sales Hit Worst Month in Decades

The video games industry has recorded one of its most alarming months on record, raising fresh concerns about the long-term future of physical game sales and dedicated gaming hardware.

According to new data from market research firm Circana, November 2025 was the worst November for US video game hardware unit sales since tracking began in 1995. On top of that, physical software sales also fell to a historic low for the month.

Hardware Sales Collapse in Key Holiday Period

According to their research, physical software fell 14% year-on-year in November 2025, making it the weakest November for boxed game sales since tracking began in 1995. The collapse comes despite November traditionally being one of the strongest retail periods of the year.

While digital downloads, subscriptions and mobile gaming now make up the bulk of video game spending, the continued erosion of physical sales has reignited debate over whether boxed games can realistically survive much longer at mainstream retail.

Even blockbuster releases failed to reverse the downward trend. Call of Duty: Black Ops 7 was the best-selling game in November and currently ranks as the seventh-best-selling title of 2025 overall.

However, Circana reports that the Call of Duty franchise still suffered a double-digit percentage decline in complete game dollar sales compared with November 2024, despite once again topping the charts. The result highlights how even the industry's biggest franchises are struggling to drive physical purchases in a market increasingly dominated by digital access and subscription services.

The collapse in physical software sales was mirrored by a dramatic downturn in console hardware, further weakening the traditional retail ecosystem that physical games depend on.

Just 1.6 million video game consoles were sold in the US in November 2025, which is the lowest November total in three decades and only marginally higher than the 1.4 million units sold in 1995. Hardware spending dropped 27% year-on-year to $695 million (£548.3 million), making it the weakest November for console revenue since 2005.

This is particularly striking given that November is usually a peak month, boosted by Black Friday promotions and early Christmas shopping. Circana attributes much of the decline to rising prices. The average price paid for a new console hit $439 (£345), an all-time November high and 11% higher than last year, significantly dampening consumer demand.

Consoles Struggle as Prices Rise and Interest Wanes

Despite the slump, the PlayStation 5 was the best-selling console of the month in both unit sales and revenue. The Nintendo Switch 2 followed in second place, while the Xbox Series X/S ranked third in terms of spending.

In unit sales alone, the more affordable NEX Playground outsold Xbox hardware, highlighting how price sensitivity is increasingly shaping consumer behaviour.

Year-on-year declines were severe: Xbox Series hardware sales fell by around 70%, PlayStation 5 sales dropped by over 40%, and combined sales of Nintendo Switch and Switch 2 declined by more than 10%, despite 2025 being a launch year for Nintendo's new system.

Some analysts believe part of the slowdown reflects consoles nearing the end of their life cycles, with gamers potentially holding off for next-generation announcements. Others point to the Switch 2's limited exclusive library, with many titles still available on the cheaper original Switch, reducing the incentive to upgrade.

Overall US video game spending in November fell 4% year-on-year to $5.9 billion (£4.6 billion), with declines across hardware, accessories and physical software only partially offset by growth in subscriptions and mobile gaming.

While there are multiple factors behind the downturn, rising prices are widely viewed as the biggest threat. As the industry heads into 2026, the latest figures raise a pressing question: are boxed games close to being non-existent?