Physical Game Sales for Xbox in the U.S. Are Plummeting

Concerns are rising about the future of physical media as PlayStation plans to phase out discs by 2028, with Xbox likely to follow. A recent statistic reveals that only about 4 percent of all new physical video games sold in the U.S. this year were for Xbox.

According to a monthly report, a significant 63 percent of new physical games sold were for Nintendo platforms, while PlayStation accounted for 32 percent. When I reached out to an analyst for clarification on Xbox’s share, it was noted that PC also had some physical editions this year, including collector’s editions of titles like 007 First Light and Assassin’s Creed Black Flag Resynced. This leaves Xbox with just over 4 percent of the market.

Several factors contribute to this distribution. It’s well-known that Nintendo fans tend to buy physical games at a much higher rate than those on PlayStation or Xbox, which explains Nintendo’s dominance in this statistic. The notable preference for PlayStation over Xbox could be attributed to the popularity of Xbox Game Pass Ultimate, which allows players to access a broader range of games digitally compared to PlayStation users. Additionally, many of Xbox’s major first-party releases this year, such as Halo: Campaign Evolved and Forza Horizon 6, have been or will be available across multiple platforms. We also lack specific data on the number of physical copies produced for PlayStation versus Xbox, so it’s possible that PlayStation simply has a higher output. Alternatively, Xbox sales might be experiencing a significant decline.

This situation raises intriguing questions about the market’s future once PlayStation stops producing discs. It could mean a substantial shift, with about a third of physical game sales transitioning to digital or disappearing entirely. If Xbox makes a similar move, the impact may not be as pronounced. Nintendo remains the key player in this scenario, although the introduction of game-key cards for some upcoming Switch 2 titles suggests it might also be contemplating a shift away from physical media, albeit at a later date.

Additionally, the report highlights that new physical software sales for July 2026 reached an all-time low of $85 million. This figure reflects new sales, and July wasn’t particularly rich in new releases that would drive demand for physical copies. Overall spending is down as costs rise and consumers tighten their budgets for hobbies. Notably, January of this year also recorded an all-time low, indicating a broader trend that Sony has recognized regarding the declining popularity of physical discs, despite fan resistance.

In total, content spending in July, which includes physical software, digital purchases, subscriptions, and more, fell by 9 percent year-over-year, primarily due to a significant drop in mobile spending, along with declines in console and PC content. Subscriptions were the only area to see growth. Call of Duty: Black Ops 2 emerged as the best-selling game of July in dollar sales, climbing from No. 67 last month, thanks to a current-gen PlayStation port. Black Ops also saw a rise to No. 5 last month for the same reason, with Black Ops 2 now ranking as the fifth best-selling game of 2026 so far.

In the second spot was EA Sports College Football 27, which, if combined with the MVP Bundle (2026), would have taken the top position. The MVP Bundle separately ranked No. 4 for the month, while EA Sports College Football 27 alone is now the tenth best-selling game of 2026.

Other notable entries in the charts included Assassin’s Creed Black Flag Resynced at No. 3, Halo: Campaign Evolved at No. 6, Splatoon Raiders at No. 7, and Echoes of Aincrad: Sword Art Online at No. 8. It was shared that Halo was the sixth best-selling game on PlayStation last month, with 2 percent of all active PlayStation players engaging with it, compared to 10 percent of active Xbox players.

Palworld made a splash with its 1.0 launch last month, becoming the No. 2 best-selling game on Steam in dollar sales, just behind Assassin’s Creed Black Flag Resynced at No. 1.

Lastly, Digimon Story: Time Stranger saw a significant jump from No. 87 in June to No. 23 in July, thanks to its release on Switch.

*Indicates the data includes at least some digital sales projections. Some publishers and platforms do not share digital sales data with Circana.