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Spending on game consoles increases because of the Switch 2 and prices

Olivia Brown by Olivia Brown
October 9, 2025
in Entertainment
Reading Time: 2 mins read
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Americans are spending more on game consoles in 2025 than in August of last year, and that’s mainly due to the Nintendo Switch 2 and pricing. Hardware sales topped $312 million in the U.S. in August, up 32% from $236 million in August 2024, according to Circana. This is a huge increase, especially since sales of the PlayStation 5, Xbox Series, and original Switch all fell by double-digit percentage points year-over-year.

One of the main drivers is the Switch 2, which sold more than 2.4 million units in the United States in its first three months, making it the best-selling console of all time. It surpasses the PlayStation 4 (the previous record holder) by five percent after three months. And compared to the original Switch, the Switch 2 is absolutely crushing – outpacing its predecessor by 77% at this point in its lifecycle.

Consumer spending on gaming consoles in the United States totaled $2.9 billion for the year, up 20% from last year. But while the number of consoles sold increased 6.5% year-over-year, prices rose 12.3%, accounting for the bulk of the increase in spending. A 512GB Xbox Series S started the year at $299.99 and is now $399.99. The all-digital Series X started at $449.99 and is now up to $599.99. Likewise, all PlayStation 5 models have seen their price increase by $50.

Despite the surge in prices, consumers are not yet afraid. But, while $799.99 for a 2TB Xbox Series X in Galaxy Black is hard to swallow, we haven’t quite reached Neo Geo prices yet. This handheld debuted at $649.99 in 1990, or about $1,500 today. The bar is therefore quite high.

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Tags: consolesgameincreasespricesspendingSwitch
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