According to a recent report by market research firm Circana, the Sony PlayStation 5 became the best-selling game console in the US market in January 2026, leading the list in both sales volume and revenue. The Nintendo Switch 2 ranked second in both metrics, contributing to the overall increase in gaming hardware spending that month.
In January 2026, total spending in the U.S. video game industry reached .7 billion, a 3% increase from .559 billion in January 2025. The growth was primarily driven by two sectors: a 23% surge in subscription service spending and a 16% increase in hardware sales. These two increases were sufficient to offset a 5% decline in spending on accessories.
Hardware spending climbed to 8 million that month, compared to 3 million in the same period last year. While the PlayStation 5 led the market in both sales volume and total revenue, its sales were down 17% year-over-year from January 2025. Xbox Series X console sales declined 27% year-over-year, with the original Nintendo Switch experiencing a dramatic 79% drop.
However, the Nintendo Switch 2 became the core driver of overall hardware revenue growth, offsetting the decline of other platforms. It ranked second in both sales volume and revenue, indicating a strong start for the new console in the US market.
On the software side, content spending rose 3% year-over-year to .3 billion. Subscription service growth was once again the core driver, with console game content spending increasing by 2%, PC game content spending rising slightly by 1%, and mobile spending declining slightly by 1%.
Call of Duty: Black Ops 7 remained at the top of the overall software charts for the second consecutive month, also taking the top spot in PlayStation sales. NBA 2K26 and Madden NFL 26 ranked second and third, respectively. Final Fantasy VII Remake saw a significant sales surge after the release of its new versions for Switch 2 and Xbox Series X, jumping from 225th place in December to 9th place in January's overall charts.
Overall, January's market data reflects that the hardware market is in a transitional period of change: PlayStation 5 maintained its leading position in the market despite a year-on-year sales decline, while Switch 2 became a key growth engine in the market from the early stages of its launch.
This article is a user submission and does not represent the views of this website.
The copyright of this content belongs to the original author. Please contact the original author for authorization before reprinting. For any copyright infringement issues, please contact copyright@jaketao.com
