Gaming Hardware Was Always Expected To Struggle In 2024, But It Was Worse Than One Analyst Expected

Circana has shared new video game data that shows how challenging 2024 was for video game hardware. Total spending on PlayStation, Xbox, and Switch devices in the US declined a gargantuan 25%, dropping to $4.9 billion (down from $6.45 billion in 2023).

For December 2024 specifically, spending on new video game hardware fell 29%, declining to $1.1 billion. PS5 hardware sales in December 2024 dropped by 18%, with Xbox Series X|S and Switch sales each declining a more precipitous 38%.

A major drop in spending on video game hardware is expected, of course, given PS5 and Xbox Series X|S being past their prime selling peaks and the Switch’s maturity in the market, Circana’s Mat Piscatella said. That said, Piscatella commented that the decline was bigger than he expected.

PS5 was December 2024’s best-selling console platform in terms of units sales and dollars, with Switch coming in second place. For 2024 overall, PS5 led the way in unit and dollar sales, followed by Xbox Series X|S for dollar sales and Switch coming in at No. 2 for unit sales.

Also of note is that 49% of all PS5 consoles and 43% of Xbox Series X|S devices sold in December 2024 did not have a disc drive. For 2024 overall, all-digital consoles made up 45% of PS5 units sold and 44% of all Xbox Series X|S consoles.

Something else to know is that, while the PS5 is pacing 7% ahead of the PS4 in terms of unit sales after its first 50 months on the market, Xbox Series X|S sales are down 18% compared to Xbox One.

Another key statistic was that PS5 is now the No. 3 best-selling console in US history of all time based on dollar sales, only behind Nintendo Switch and Xbox 360. PS5 is now the No. 11 best-selling console in US video game history based on unit sales.

Nintendo is launching the Nintendo Switch 2 in 2025, and that should help improve hardware spending this year. Microsoft is said to be cooking up a new Xbox console and a new Xbox handheld device, while Sony is rumored to be developing the PS6.

In terms of video game sales in 2024 in the US, Call of Duty: Black Ops 6 was the No. 1 best-selling game of the year.