November 2025 marked a significant downturn in U.S. video game sales, recording the worst month for both hardware and physical software sales since 1995. According to Circana's report, overall spending dropped 4% year-over-year to $5.9 billion, with hardware spending plummeting by 27% to $695 million. Xbox Series sales saw a staggering 70% drop, while PS5 and Nintendo Switch sales also declined. The average price for video game hardware rose to a record high, possibly discouraging purchases. On the software side, while subscription revenue grew, physical game sales declined by 14%, with "Call of Duty: Black Ops 7" emerging as the month's best-seller but still showing a significant drop compared to its predecessor. The report raises concerns about the gaming market's future due to rising costs and consumer spending shifts.

What caused the decline in video game sales in November 2025?

The decline in video game sales in November 2025 can be attributed to rising hardware prices, a decrease in unit sales across major consoles, and a drop in physical software sales despite slight growth in subscription services. Economic factors and consumer hesitation appear to be contributing to a shift away from gaming purchases.

Additionally, "Call of Duty: Black Ops 7" continues to be a dominant force in gaming with its 18th consecutive year at the top of the sales chart, despite experiencing a decline in dollar sales compared to previous entries. This title and others like it reflect ongoing trends in the gaming industry, where franchises have both loyal fanbases and face evolving consumer dynamics amidst economic pressures.