PlayStation and Xbox drop drastically in physical sales in the most demanding

The gaming community has been leaning more towards digital games throughout the latest generation. This is clearly noticeable from the gaming sales of July 2026.

According to Circana data on new physical purchases in the U.S. (via Kotaku), the only company profiting significantly from the physical market has been Nintendo, with 64% of physical sales in July 2026. Despite having Game Key Cards, the Nintendo Switch 2 hasn’t released a digital edition, giving every player access to physical games. 

For the other console platforms, PlayStation received 32% of physical sales, while Xbox owned just 4% of physical sales. Surprisingly, the last remaining physical sales percentage came from the PC platform due to physical collector editions from games like Assassin’s Creed Black Flag Resynced. Since these platforms are mainly encouraging digital purchases with their digital market and cost-effective digital hardware, many players would lean more towards digital games.

The sales performance for July 2026 wasn’t very great, as the total spending for games reached an all-time year-over-year low of just $85 million. It seems PlayStation and Xbox have recognized the lowered interest in physical games, which could influence their decisions to provide more support for digital games. It’s even revealed in Matt Priscilla’s survey results, confirming that 59% of U.S. players prefer digital games over physical games, including an all-digital library. This data could change as the gaming industry continues to develop, with more games depending on digital releases, like Grand Theft Auto 6.

Brandon Williams

Brandon has played games ever since the PS2 like Ape Escape, Rampage Total Destruction, and Crash Bandicoot. His love for RPGs would only grow once he played Persona 3, which made him try other immersive games like Shin Megami Tensei Nocturne and Xenoblade Chronicles. He continues to play on modern consoles like PS4 and Nintendo Switch 2.