Overview
- Circana’s Mat Piscatella reports U.S. spending on new physical games fell to $1.5 billion in 2025, the lowest level in the firm’s data back to 1995.
- The year-over-year decline moderated to 11% from a 28% drop in 2024, the smallest annual fall since 2021.
- Discless console options, including the PS5 without a drive and Xbox Series S, continue to accelerate digital adoption.
- Publishers and platform holders gain from reduced manufacturing and shipping costs as well as stronger platform lock-in through digital storefronts.
- Physical sales still deliver sizable revenue for PlayStation, though recent holiday quarters were weaker, and reporting points to similar pressures in the U.K.