Americans are spending more than ever on gaming hardware — and it’s not just hype. Spending on game consoles is up because of the Switch 2 and tariffs, according to fresh data from Circana. In August 2025 alone, hardware sales in the US hit $312 million, a 32% jump from $236 million the previous year.
That growth comes even as PlayStation 5, Xbox Series X/S, and the original Switch saw double-digit declines. The clear winner? Nintendo’s Switch 2, which continues to shatter sales records.
Switch 2 Sales Are Driving Record Hardware Revenue
The Nintendo Switch 2 has sold more than 2.4 million units in the US during its first three months — making it the fastest-selling console of all time. It’s even outpacing the PlayStation 4, which previously held the crown, by a full 5% at the same milestone.
Compared to the original Switch, the new model is in a league of its own — outperforming its predecessor by a staggering 77%. This explosive growth shows just how strong Nintendo’s hold on the market remains, even with fierce competition.
Tariffs Are Also Pushing Console Prices Higher
But it’s not just demand driving the numbers. Tariffs on imported electronics have raised the cost of manufacturing and distribution, forcing companies to bump up retail prices. According to Circana, console prices are up 12.3% year over year, while the number of units sold has increased only 6.5%.
That means much of the rise in total spending comes from higher prices, not just more people buying consoles. For many gamers, the cost of upgrading is steeper than ever — but demand for the latest tech clearly hasn’t cooled.
Consumer Spending Hits $2.9 Billion In 2025
So far in 2025, Americans have spent an impressive $2.9 billion on game consoles — a 20% increase from last year. The Switch 2 remains the biggest growth driver, thanks to its next-gen performance, upgraded display, and deep game library.
With upcoming holiday releases and limited-edition bundles, analysts expect this upward trend to continue. And unless tariffs ease or new competition emerges, spending on game consoles is likely to stay high through 2026.
Spending on game consoles is up because of the Switch 2 and tariffs, and it’s reshaping the entire gaming hardware market. Nintendo’s blockbuster launch shows that players will pay a premium for innovation — even as trade policies push prices higher.
For now, it’s a win for console makers, and a signal that the next generation of gaming has officially arrived.
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