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Not across every measure. Circana forecast that total U.S. video game spending would rise 3% in 2026, with the Nintendo Switch 2’s second year among the expected contributors. But that forecast covers hardware, games and accessories—not console hardware alone—and the latest monthly data in the available figures showed U.S. hardware spending down 29% year over year in July 2026.
What does “spending is up” mean?
The headline growth figure is a forecast for the whole U.S. video game market, not proof that console sales or hardware spending are currently rising. Circana reported that U.S. consumer spending on video game hardware, content and accessories reached $60.7 billion in 2025, up 1.4% from 2024. On February 11, 2026, it forecast $62.8 billion for 2026, a 3% increase.
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Circana named the Switch 2’s second year as one contributor to the 2026 outlook, alongside anticipated software and subscription engagement. The forecast does not isolate how much growth the console itself will generate, and it is not an estimate of tariffs’ effect. Circana industry advisor Mat Piscatella said, “While overall hardware faces headwinds, a stellar slate of software and strong subscription engagement suggests a particularly exciting year.”
What happened to U.S. console hardware spending in July 2026?
The latest monthly result cited here points in the opposite direction from the annual market forecast. Circana reported U.S. video game hardware spending of $282 million in July 2026, down 29% from July 2025. Hardware unit sales fell 39%, while the average selling price rose 16% to $542.
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#1 Best Overall
- The next evolution of Nintendo Switch
- One system, three play modes: TV, Tabletop, and Handheld
- Larger, vivid, 7.9” LCD touch screen with support for HDR and up to 120 fps
- Dock that supports 4K when connected to a compatible TV*
- GameChat** lets you voice chat, share your game screen, and connect via video chat as you play
These measures describe different things. Consumers spent fewer dollars overall and bought fewer hardware units, but the average price of hardware sold was higher. A rising average selling price does not by itself show that total spending or unit sales increased.
Year-over-year hardware unit sales fell 6% for PlayStation 5, 18% for Xbox Series and 51% for Switch 2, Circana reported. Those comparisons use July 2025 as the baseline, when Switch 2 was in its launch period; they should not be read as a measure of its entire lifecycle performance.
Is Switch 2 still performing strongly?
It can be ahead of its predecessor over a matched period and still post a steep year-over-year drop. Circana said Switch 2’s sales pace through its first 14 months was 11% ahead of the original Switch at the same point in that console’s lifecycle, even as Switch 2 unit sales in July 2026 were 51% lower than in July 2025.
Rank #2
- The next evolution of the Nintendo Switch system
- One system, three play modes: TV, Tabletop, and Handheld
- Larger, vivid, 7.9” LCD touch screen with support for HDR and up to 120 fps
- Supports up to 4K resolution** when using a compatible game and TV connected via the included Nintendo Switch 2 dock
- Nintendo Switch 2 plays compatible physical and digital Nintendo Switch games.***
Nintendo reported worldwide lifetime sales of 23.68 million Switch 2 hardware units and 58.17 million software units as of June 30, 2026. These are Nintendo’s worldwide unit totals, not U.S. consumer spending figures. The distinction matters: a worldwide lifetime sales count and a U.S. one-month year-over-year comparison answer different questions.
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Fix the driver behind crashes, sound loss and screen glitchesFind Drivers →Repair Windows errors before they cause bigger problemsFix Now →For readers looking at the hardware behind the market story, the Nintendo Switch 2 is the console Circana identified as one contributor to its full-year U.S. industry forecast. That attribution should not be mistaken for evidence that all console categories are growing.
Are tariffs raising console prices or spending?
Tariffs are one cost factor Nintendo has discussed, but the company has not said they alone caused a hardware price change or an increase in consumer spending. In its May 2026 financial results Q&A, Nintendo president Shuntaro Furukawa said the company’s fiscal-year forecast included an estimated combined impact of approximately 100 billion yen from rising memory and other component prices plus tariffs. Nintendo did not publish the calculation in detail.
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Furukawa said, “This change in hardware pricing was not due to any one specific factor.” Nintendo also cited exchange rates, oil prices and regional differences. On tariffs specifically, Furukawa said, “Regarding tariffs, your understanding is correct. We are applying an absolute amount, not a difference compared to the previous fiscal year.” The remarks support saying tariffs form part of Nintendo’s cost considerations; they do not establish that tariffs alone drove a price change or market growth.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How might consumers respond to higher costs?
Circana’s February 2026 forecast release cited its Future of Video Games consumer research on possible cost increases from tariffs and/or other factors. Respondents said they would be more likely to take several actions:
- 38% said they would purchase fewer full-price games at launch.
- 34% said they would wait longer for sales.
- 27% said they would spend more time on free-to-play games.
These percentages report stated intentions under a possible cost increase, not observed purchasing behavior. They also concern game-buying choices, not a direct measurement of console purchases.
What do accessory sales add to the picture?
U.S. accessory spending fell 6% to $178 million in July 2026, according to Circana, even as spending on the broad cases-and-organizers category rose 36% year over year. That category-level increase does not establish that Switch 2-compatible cases grew, or that all gaming accessories gained sales. Check compatibility on a product listing rather than inferring it from the market trend.
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