Hardware Sales Decline: A 30-Year Low in the Gaming Industry
In a shocking turn of events, hardware sales and physical game spending in the US have hit their lowest point in 30 years this November. According to Circana, only 1.6 million units of video game hardware were sold, marking a significant drop from previous years and the lowest since 1995. This decline is attributed to a combination of high average prices for new consoles, which reached an all-time high of $439, and a general downturn in consumer spending.
November is typically a peak month for gaming hardware sales, driven by Black Friday deals and holiday shopping. However, the 27% decrease in monthly hardware spending compared to last year indicates a troubling trend for the industry. Even the best-selling console, the PlayStation 5, couldn’t offset the overall decline, as consumers seem to be tightening their wallets amid rising costs.
As we look ahead, the question remains: how will console manufacturers respond to these challenges? With tariffs and component prices on the rise, the ability to lower hardware prices may be limited, potentially leading to further declines in the dedicated gaming device market. The future of gaming hardware sales hangs in the balance, and it will be interesting to see how the industry adapts to these changing dynamics.
Original source: https://www.videogameschronicle.com/news/hardware-sales-and-physical-game-spending-in-the-us-just-had-the-worst-november-in-30-years/