Circana has shared new video game data that shows how challenging 2024 was for video game hardware. Total spending on PlayStation, Xbox, and Switch devices in the US declined a gargantuan 25%, dropping to $4.9 billion (down from $6.45 billion in 2023).
For December 2024 specifically, spending on new video game hardware fell 29%, declining to $1.1 billion. PS5 hardware sales in December 2024 dropped by 18%, with Xbox Series X|S and Switch sales each declining a more precipitous 38%.
A major drop in spending on video game hardware is expected, of course, given PS5 and Xbox Series X|S being past their prime selling peaks and the Switch’s maturity in the market, Circana’s Mat Piscatella said. That said, Piscatella commented that the decline was bigger than he expected.