Video Game Spending Rises at Start of 2026, Thanks to Switch 2 and Subscriptions

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The video game industry continues to face headwinds, with layoffs, project cancellations, and team closures marking the beginning of 2026. Despite these difficulties, the U.S. video game market is projected to reach $62.8 billion in 2026, exceeding the previous record of $61.7 billion set in 2021, according to Circana’s Mat Piscatella. This 3% growth is largely fueled by the ongoing success of the Nintendo Switch 2 and the highly anticipated launch of Grand Theft Auto 6 (GTA VI) from Rockstar Games. Data from GamesIndustry.biz indicates that total consumer spending on video games (consoles and PC) in North America increased by 3% year-over-year in January 2026, totaling $4.3 billion. Premium subscription services like Xbox Game Pass and PS Plus were a key driver, with revenue soaring 23% to $596 million in January. While only one new title, Code Vein II (at number 11), broke into January’s top 20, overall software sales benefited from the growth in subscription-based gaming.

Hardware spending also saw gains, climbing 16% compared to January 2025, reaching $248 million. The Nintendo Switch 2 compensated for sales declines in other consoles, specifically the PlayStation 5 (down 17%), Xbox Series X/S (down 27%), and the original Nintendo Switch (down 79%). The strength of the Nintendo Switch 2 launch not only sustained financial growth in the sector, but also positioned the console to continue its dominance of the U.S. console market in 2026 after being the fastest-selling console in the U.S. in 2025. The PlayStation 5, however, remained the best-selling console in the U.S. during January. Several factors point to continued growth. Circana data reveals high consumer anticipation for Rockstar’s GTA VI. Subscription gaming services, which saw spending increase by 20% last year, are expected to maintain their upward trajectory. However, the market could also be affected by rising component costs, driven by global demand for AI technology, potentially making hardware more expensive and shifting consumers towards existing devices and cloud gaming models. In this environment, Valve’s Steam Machine could disrupt the hardware market with competitive pricing. Here’s a look at January’s top-selling software titles:

Expansion in U.S. Video Game Market Driven by Nintendo Switch 2, Subscription Services, and Anticipated Titles

Despite somewhat mixed reviews, Call of Duty: Black Ops 7 led game sales in January, reaffirming the franchise’s enduring strength. The remaining top titles included: NBA 2K26 (2nd) Madden NFL 26 (3rd) Minecraft (4th) Battlefield 6 (5th) Final Fantasy 7 Remake made a remarkable leap, moving from position #255 into the Top 10, due to its release on Nintendo Switch 2 and Xbox Series X/S. Similarly, Fallout 4 climbed from 68th to the Top 20, boosted by the premiere of the second season of its live-action series on Amazon Prime Video; its ranking is expected to rise further with the arrival of its Switch 2 version. The U.S. video game industry is poised for expansion in 2026, driven by the Nintendo Switch 2, the popularity of subscription services, and the upcoming release of highly anticipated titles.

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In gaming news that’s sure to spark your interest, we’ve got a trio of exciting reads for you. First off, Carlos Mendoza takes us on an inspiring journey with “UFSC Project Launches Educational Game on Digital Security for Youth and Teenagers” UFSC Project Launches Educational Game on Digital Security for Youth and Teenagers. Dive into the innovative 2D adventure game, “Lelê and the Threats in the Metaverse,” created by young apprentices at Prototipando a Quebrada in collaboration with UFSC’s Internet Legacy Project. This isn’t just another game; it’s a tool designed to educate youth about digital security and safe internet use through real-life scenarios.

Shifting gears to the world of anime, Ahmed Hassan recently explored the upcoming adaptation of JoJo’s Bizarre Adventure Part 7: Steel Ball Run in his piece, “First Trailer for Steel Ball Run of JoJo’s Bizarre Adventure” First Trailer for Steel Ball Run of JoJo’s Bizarre Adventure. Set to premiere exclusively on Netflix from March 19, this series marks Warner Bros. Japan’s seventh collaboration with david production, promising another thrilling ride into Hirohiko Araki’s captivating world. Join jockey Johnny Joestar and his companion Gyro Zeppeli as they embark on an extraordinary journey filled with mystery and adventure in the wild American frontier.

Lastly, Marcus Thompson has just dropped a fascinating insight into Amazon’s upcoming live-action Tomb Raider series with “Sophie Turner’s New Pictures as Lara Croft on Set of Amazon’s Live-Action Tomb Raider Reveal a Different Look” Sophie Turner’s New Pictures as Lara Croft on Set of Amazon’s Live-Action Tomb Raider Reveal a Different Look. Fans can get an exclusive sneak peek at Sophie Turner’s interpretation of the iconic character alongside her companion Zip, as we eagerly await how this version differs from previous games. With these three captivating reads, you’re sure to have a well-rounded gaming and anime experience!