February saw the launch of a bunch of big, next-gen only releases including Monster Hunter Wilds, Kingdom Come: Deliverance 2, and Avowed, but despite a month littered with new games, new console sales continue to lag. In fact, last month was reportedly the lowest point for gaming hardware sales since before the pandemic.
That’s according to the latest data from market research group Circana. The firm’s executive director for video game analysis, Mat Piscatella, released February’s sales data for the U.S. video game industry showing that while it was a great month for new game releases, new console sales are still in a slump. Overall video game hardware spending was just $256 million, down 25 percent from the prior year.
“This is the lowest February total for video game hardware spending since the $184 million reached in February 2020,” he wrote. Five years ago, the PlayStation 4 and Xbox One were both on their last legs and players awaited the next-gen consoles that fall, while Switch sales would explode a few months later with the release of Animal Crossing: New Horizons just as people were in lockdown for covid-19.
In 2025, Nintendo fans are waiting for the Switch 2 and both the PS5 and Xbox Series X/S are in the back half of their lifespans. One of them, however, is doing a lot better than the other. “After each platform’s first 52 months in market, PlayStation 5 unit sales exceed PlayStation 4’s sales pace by 7 percent, while Xbox Series now trails Xbox One by 19 percent,” Piscatella wrote.
One way to look at those numbers is that the PS5 continues to dominate despite never getting a price cut (in fact its all-digital slim model costs $50 more than at launch). At the same time, it’s also seems clear that not everyone who’s decided to forgo an Xbox Series X/S is buying Sony’s console instead. Many analysts, including Piscatella, also predict that the Switch 2 will struggle to match the sales figures of its predecessor.
Have gaming consoles peaked? The Switch 2 isn’t the only major variable involved in that question, the answer to which could have big consequences for whether the gaming industry’s current ambient doom spiral continues. Grand Theft Auto VI is also coming this fall and expected to drive tons of people to pick up new consoles, including the millions still playing on last-gen hardware. Whether that’s enough to increase overall console adoption or not remains an open question though, even if the consoles and dedicated handhelds themselves are just becoming more and more like gaming PCs in disguise.
.
