For the first time in more than 15 years, spending on physical video games in the United States has increased year over year, and new data suggests the Nintendo Switch 2 played a major role in reversing the long-running decline.
According to market research firm Circana, US consumers spent $1.6 billion on physical games during the 12 months ending May 2026, representing a 3% increase compared to the previous year. It marks the first annual growth in the physical games market since 2009, when boxed game sales reached $11.5 billion.
Nintendo Switch 2 was the biggest reason behind the increase
Circana Executive Director and video game industry analyst Mat Piscatella said the improvement was driven almost entirely by Nintendo’s newest console rather than a broader shift back to physical media.
Speaking to GamesIndustry.biz, Piscatella explained,
“This is the Switch 2 bump.”
He added that physical software sales on Nintendo platforms are up around 26% compared to a year ago, although they still remain below the levels recorded during the 12 months ending May 2024.
Piscatella also explained on BlueSky that the long-term decline in physical game sales has been largely caused by the industry’s continued move toward digital purchases, noting that second-hand sales have had relatively little impact compared to digital distribution.
Despite the positive milestone, Piscatella cautioned against viewing the latest figures as a long-term trend. He believes the recent increase is tied to the launch momentum of the Nintendo Switch 2 rather than a permanent revival of boxed games.
“Very likely to be a temporary blip,”
Piscatella said, noting that all other gaming ecosystems continue to experience double-digit declines in physical software sales. He added that the market will likely continue shrinking until console manufacturers eventually stop producing systems with physical disc drives.
The report arrives as publishers increasingly experiment with code-in-a-box releases instead of traditional game cartridges or discs. Piscatella recently noted that dozens of titles have already adopted the format in 2026, highlighting the industry’s continued transition toward digital distribution.
Nintendo Switch 2, which launched in June 2025, has enjoyed a strong start worldwide. Nintendo previously confirmed that the console had sold 19.86 million units globally by the end of March 2026, with demand remaining high enough for the company to reportedly increase production earlier this year.
