Physical Game Purchases Plummet to Historical Lows

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According to Circana, spending on physical video game purchases in the US decreased by 11% in 2025 compared to 2024. This represents an improvement over the 28% decline between 2023 and 2024, but still indicates an overall decrease of 36% in two years. The 2025 figure of $1.5 billion marks the lowest amount since tracking began in 1995. For context, the peak year for physical game sales was 2008, with $11.6 billion in purchases. Declines have occurred annually since then. Circana attributes the relative stability in 2025 to the release of the Nintendo Switch 2, but cautions that the market is nearing its floor, suggesting that further drops may soon be unsustainable. However, a contrasting trend is emerging: younger consumers are showing renewed interest in physical media, a development that could potentially influence the trajectory of physical game sales.

Revived Physical Media Frenzy Among Gen Z Boosts Independent Game Stores Amidst Struggles for Affordability

This renewed interest is evident in the DVD market, where a Los Angeles store reports renting approximately 1,000 DVDs weekly due to increased Gen Z patronage. Similarly, independent stores like AC Games in Toronto and RATNEST in San Bernardino County are seeing more young customers seeking physical media, particularly for rare or niche games. Robbie Ratnest, owner of RATNEST, prioritizes fostering a gaming culture over maximizing profit, even if it means delaying his retirement. Last fall’s Toronto Game Expo, a retro gaming convention, also attracted a record number of young attendees. This renewed interest, however, presents a challenge for secondhand game stores, which are struggling to maintain affordable prices while appealing to younger fans.

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