A new report from Circana shows that US spending on video game hardware, content and accessories declined by 6% in May to US$3.97 billion, a difference of nearly US$300 million compared to the same month last year. 

All sectors of the industry were affected, with hardware spending dropping 40% to US$202 million. Mat Piscatella, Circana’s video games executive director, notes that all console sales are down 30% so far this year as the platforms reach the tail end of their selling cycles. PlayStation (down 29.3%) and Xbox (down 31%) both reported double-digit decreases globally this year in Q1, with even Nintendo’s Switch console taking a 19.3% dip because many gamers are waiting for the launch of the company’s next console generation in 2025. 

Meanwhile, video game content sales for the month were down by US$109 million (3%) year over year, thanks to a lack of new blockbuster rollouts. In May 2023, Nintendo had just launched its console exclusive The Legend of Zelda: Tears of the Kingdom, which sold more than 10 million copies worldwide in its first three days at market. 

Kids games that cracked Circana’s list of May’s 10 top-sellers include Nintendo’s Paper Mario: The Thousand-Year Door (#2), Microsoft’s Sea of Thieves (#6), Minecraft (#7) and Warner Bros. Games’ licensed RPG Hogwarts Legacy (#9).