November in the United States is typically marked by the excitement of Black Friday deals, but this year it has fallen short for the gaming industry. Reports suggest a significant decline in sales for physical games and gaming hardware, making it one of the lowest-performing November months since 1995. According to the latest findings shared by Mat Piscatella, total spending across video games, hardware, and accessories reached $5.9 billion, reflecting a 4% decrease from November 2024.
Decline in Hardware and Game Sales
The depressing trend continues with hardware spending, which plummeted to $695 million, marking a 27% drop from the previous year. November 2025 has now recorded the second-lowest spending on video game hardware since November 2005, with units sold that month totaling just 1.6 million. This downfall is further emphasized by the dwindling sales of specific consoles, notably with the Xbox Series X/S dropping by an alarming 70%, PlayStation 5 by 40%, and Nintendo Switch by 10%, despite the recent availability of the Switch 2.
The situation is not much better for accessories, which saw a 13% decrease in spending, primarily driven by a 19% reduction in controller sales. However, amidst this decline, content sales managed to rise slightly by 1% compared to last year. Physical game sales, meanwhile, hit a record low not seen since tracking began, with a 14% decrease.
Impact of Rising Costs on Gaming Industry
The driving factor behind these declines appears to be the escalating costs of video games and hardware, compounded by the broader economic pressures that leave consumers with less disposable income. Mat Piscatella noted that the cost of consoles and games has not only increased but has also outpaced the spending capabilities of many consumers. The average price for a console in the U.S. has jumped from $239 in 2019 to $439 today.
With essential costs rising, many consumers find themselves balancing between necessary expenditures and discretionary spending on gaming. Piscatella warns that if price hikes continue, especially with components like RAM, the gaming device market could face severe repercussions, potentially influencing the broader gaming content market.
Top-Selling Titles and Future Outlook
Despite the downturn in hardware and physical sales, the video game market still has some bright spots. Battlefield 6 continues to dominate sales charts, both on a monthly basis and year-to-date, leading to speculation that it could surpass Call of Duty: Black Ops 7 in total annual sales. While Call of Duty topped November’s sales, it failed to break into the top five for the year, as Battlefield 6 maintained strong performance as the second-best-selling game for the month.
The broader question remains whether these November figures are an anomaly or the start of a worrying trend. The outlook for December 2025 remains uncertain, with ongoing economic challenges suggesting that consumers might continue to face financial pressure when it comes to purchasing the latest gaming technology and titles.