November 2025 was a surprising month for video game sales in the U.S. Instead of the usual surge driven by Black Friday, this November marked the worst sales in hardware and physical software since 1995. According to Circana’s report, total spending dropped 4% year-over-year, reaching about $5.9 billion.
### Hardware Struggles
Hardware sales fell dramatically, down 27% from last year, totaling $695 million, the lowest since 2005. Unit sales also plummeted to 1.6 million, the worst November since 1995. The Xbox Series saw a staggering 70% drop in sales, while PS5 sales decreased by over 40%. Even the launch of the Nintendo Switch 2 couldn’t lift overall sales, with its combined sales down 10% compared to last year.
Mat Piscatella, a senior director at Circana, noted that the average price for video game hardware hit an all-time high of $439, up 11% from last year. This price increase may explain why consumers are reluctant to spend.
However, not all hardware is struggling. The NEX Playground exceeded expectations, becoming the third best-selling console in November, fueled by strong retail placement and successful marketing efforts. Piscatella mentioned it might signal a shift towards more affordable gaming options during the holiday season.
### Software Sales Take a Hit
On the software side, things aren’t looking up either. While overall content spending grew slightly by 1% to $4.8 billion, this rise was largely due to subscriptions and mobile gaming. Physical sales of software took a nosedive, dropping 14%—the worst November for physical sales since 1995.
Call of Duty: Black Ops 7 was the month’s best-seller, continuing a long-standing trend for the franchise. Yet, it still experienced a decline in sales compared to its predecessor. This might indicate shifting consumer preferences or simply saturation in the market.
### Economic Factors at Play
Piscatella emphasizes that higher prices could be impacting spending. Wealthier consumers have kept spending, but there are signs that rising prices may be affecting the overall market. He suggests that economic factors could lead to a tighter gaming market if the trend continues.
Upcoming results in December will provide clearer insights into whether November was just a fluke or if the industry is entering a lean period.
### Looking Ahead
In a time of uncertainty, some experts believe that the video game industry might need to adapt to changing consumer behavior. The rise in interest in more affordable gaming options could shape future releases and marketing strategies.
As holiday shopping approaches, all eyes will be on the sales figures for December, which will offer a clearer picture of the industry’s health and direction.
For now, the November data gives us plenty to think about regarding the future of gaming.
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