Nobody’s Buying New Physical Games On Xbox In The U.S

The Physical Game Market: A Tale of Three Consoles (and Nintendo’s Reign)

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As PlayStation prepares to bid farewell to physical discs in 2028, a fascinating snapshot has emerged regarding the landscape of physical game sales in the U.S. It turns out that only a tiny fraction – just over 4 percent – of all new physical video games sold this year are for Xbox. This data, courtesy of Circana’s monthly report, highlights some key trends and raises questions about the future of physical media in gaming.

The Nintendo Juggernaut

According to Circana’s data, 63 percent of new physical games sold this year have been for Nintendo platforms, while 32 percent were for PlayStation. This stark contrast reveals a clear preference among gamers when it comes to owning physical copies. Several factors likely contribute to this breakdown. We’re all too familiar with the fact that Nintendo fans are much more inclined to purchase physical games than their PlayStation or Xbox counterparts, so Nintendo carrying the bulk of that percentage makes sense. But the skew toward PlayStation over Xbox is notable.

Xbox Game Pass and Digital Dominance

One potential explanation for the lower percentage of Xbox physical game sales is the widespread adoption of Xbox Game Pass Ultimate. This subscription service provides access to a vast library of games digitally, reducing the need for players to purchase physical copies. Furthermore, several of Xbox’s biggest first-party releases this year (Halo: Campaign Evolved, Forza Horizon 6) have been or will be cross-platform, potentially diluting the appeal of owning a physical copy on Xbox alone. It’s also worth noting that Xbox sales are generally down, which could further contribute to the lower percentage of physical game purchases.

The Future of Physical Media

This data paints a compelling picture of what might happen when PlayStation discontinues its disc-based consoles. Roughly a third of physical game sales would be converted to digital ones or simply vanish altogether. While this represents a significant shift, the impact on Xbox is less pronounced due to the lower percentage of physical game purchases in the first place. Nintendo remains the undisputed champion of physical media, but even they may eventually consider a move towards digital-only releases down the line. The use of game-key cards for some third-party Switch 2 releases hints at this possibility.

Beyond the Headlines: July Sales and Top Games

Delving deeper into the data, new physical software sales for July 2026 hit an all-time low of $85 million. This reflects a broader trend of declining spending in the gaming industry, as rising costs impact consumer wallets. However, January of this year also saw an all-time low, suggesting that this is more than just a seasonal blip. Sony’s decision to move away from physical discs seems to be driven by this overall decline in popularity. Despite fan outcry, the writing appears to be on the wall.

Overall, total content spending in July dropped 9 percent year-over-year, largely due to a significant drop in mobile spending and declines in both console and PC content spending. Subscriptions were the only category that saw an increase. Call of Duty: Black Ops 2 was the top-selling game of July in dollar sales, thanks to a current-gen PlayStation port, while Black Ops jumped to No.5 last month for the same reason. Black Ops is now the fifth best-selling game of 2026 so far.

EA Sports College Football 27 came in second, though combining both the individual game and the MVP Bundle would have placed it at No.1. The MVP Bundle separately charted at No.4 for the month. EA Sports College Football 27 by itself is also now the tenth best-selling game of 2026.

Assassin’s Creed Black Flag Resynced debuted at No.3, followed by Halo: Campaign Evolved at No.6, Splatoon Raiders at No.7, and Echoes of Aincrad: Sword Art Online at No.8. According to Piscatella, Halo was the sixth best-selling game on PlayStation last month, with 2 percent of active players engaging with it compared to 10 percent of active Xbox players.

Palworld saw its 1.0 launch last month, jumping to the No.2 best-selling game on Steam in dollar sales, behind Assassin’s Creed Black Flag Resynced at No.1. And finally, Digimon Story: Time Stranger jumped from No.87 in June to No.23 in July thanks to its Switch release.