We at NerdLeaks are flagging a sharp slowdown in US video game spending after a new monthly snapshot surfaced via Eurogamer. Per Eurogamer, market analysis firm Circana has published its latest monthly report and the headline numbers look bleak — yet there are a few surprising bright spots if you squint.
What Was Reported
According to Eurogamer, the industry-wide figure for June shows video game industry spending across hardware, software, accessories and add-ons fell by 21 percent year-on-year, dropping from $5.7bn to $4.5bn in the month.
Hardware was the hardest hit. Per Circana, hardware spending dropped by 62 percent compared to June last year. That sharp decline is framed against an exceptionally strong June 2025 tied to the launch of the Nintendo Switch 2, which accounted for record hardware and accessory spending in the US. The Switch 2 itself saw a steep pullback in June, registering a 79 percent decline below June 2025's record month.
Not all consoles fell equally. Circana reports PS5 hardware spending dropped by 19 percent year-on-year, which Eurogamer points out is an improvement over May, when the platform registered a 58 percent year-on-year decline — that May figure was described as the worst since May 2000. The only platform to see hardware spending growth was Xbox: the Xbox Series X/S line was responsible for "more than double" the spending compared to the same period last year. Eurogamer cautions that that improvement comes after a very poor May for Xbox, which was reportedly the platform's lowest-ever May for sales.
On software, Circana's data puts June game content spending down by 12 percent overall. The month’s best-selling new release across platforms was UFC 6, followed by the viral Steam hit Meccha Chameleon, which is estimated to have sold over 4m copies. Star Fox debuted at number four in the top ten for new releases. Meanwhile, subscriptions were the lone growth area tracked by Circana, reportedly up 7 percent.
Circana’s six-month pace was described as only one percent behind the same period last year, suggesting the first-half slump might be recoverable. Eurogamer highlights that the July–December period could be materially different, since it will include big sellers such as Grand Theft Auto 6 and other anticipated releases.
The Source & Credibility
Circana is identified by Eurogamer as a market analysis firm that tracks monthly US spending across hardware and software. We treat these numbers as notable but worth a healthy dose of scepticism — take this with a pinch of salt. Market snapshots can shift month-to-month, and many of the comparisons here are against the unusually strong June 2025 driven by the Nintendo Switch 2 launch.
There are also contextual quirks called out by Eurogamer itself: the Xbox growth figure is framed as partly a recovery from an exceptionally weak May, and the Switch 2’s steep year-on-year drop is relative to its own record month. Per Eurogamer, Circana’s methodology is not detailed in the summary we saw, so while the headline percentages are striking, the finer points of sample sizes, retail vs. digital splits and regional weighting aren’t present in the excerpt.
What It Could Mean
If true, these trends suggest several things for publishers, platform holders and players. A 62 percent hardware slump in June could pressure console makers and retailers who saw June 2025 as an outlier thanks to the Switch 2 launch. The fact that subscriptions are reportedly growing 7 percent may highlight ongoing revenue stability for services even as boxed and one-off sales wobble.
Xbox’s hardware spending growth — allegedly "more than double" year-on-year — is an eyebrow-raiser, but Eurogamer flags that it’s climbing from a low base. If this uptick holds into later months, it could signal an under-the-radar recovery for Series X/S, but if it’s merely a May-to-June bounce-back, the longer-term story might still favour Nintendo and PlayStation year-to-date.
On the software side, the strong performance of titles like UFC 6 and the breakout success of Meccha Chameleon (estimated > 4m copies) underline that new releases can still move significant units. Conversely, overall game content spending being down 12 percent suggests publishers face a tougher environment outside a few hits.
Why This Matters
Per Eurogamer’s reporting of Circana’s numbers, June looks like a reset month for the industry in the US. A $4.5bn total, a 21 percent overall drop, and a dramatic 79 percent dip for a platform that set records last year are the kinds of swings that will influence corporate forecasts and marketing plans.
We’ll be watching how the market reacts once July’s data is in, especially given the prospect of major releases including Grand Theft Auto 6 and the other titles Eurogamer lists as coming into the second half. For now, take these figures with the usual caveats — they’re informative, but the story is still unfolding if the second half lives up to the hype.
