US physical game sales drop to lowest monthly total since 1995 | US Monthly Charts

Summary

According to market research firm Circana, US physical game software sales in July 2024 totaled just $85 million, marking the lowest monthly figure since the firm began tracking in 1995. This sharp decline highlights the accelerating shift away from physical media, as digital downloads and subscription services continue to erode traditional retail sales. Despite strong performances from titles like Elden Ring: Shadow of the Erdtree, overall physical sales remained weak, with only a few new releases driving any significant retail activity. Circana analysts point to the maturing console cycle, the growing prominence of services like Game Pass and PS Plus, and frequent digital storefront sales as key factors reducing consumer demand for physical copies. Major retailers such as Best Buy and GameStop are also shrinking their physical game sections, reinforcing the trend. For the gaming industry, this milestone signals a historic transition: physical discs and cartridges are becoming niche collector's items rather than the dominant format. This shift not only affects publishers' revenue structures but also impacts the second-hand market, collector's editions, and brick-and-mortar retailers, making it a crucial development to watch.