Circana: The US Gaming Market Could Hit an All-Time High in 2026
Though, inflation-adjusted numbers are much less
Key Numbers
In 2025, Americans spent $60.7 billion on video games (hardware, content, and accessories), up 1.4% from 2024.
In 2026, the market could reach $62.8 billion (+3% YoY).
The all-time record for the US market was set in 2021, when Americans spent $61.7 billion on games.
❗️Adjusted for inflation, $61.7 billion in 2021 is equivalent to $76.7 billion as of January 2026. So a nominal record is within reach, but a real-terms record is not. I used this calculator.
Key Growth Drivers
Nintendo Switch 2 became the fastest-selling home console in US history (if we’re counting the first 7 months). Circana expects sales to keep growing through 2026.
Player interest in GTA VI is at the highest level Circana has ever recorded. Analysts expect the release to drive hardware, accessories, and subscription sales.
2026 has several big releases lined up, including at least Resident Evil: Requiem, Pokémon: Pokopia, and Marvel’s Wolverine.
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Gaming subscription revenue grew in 2025, and Circana is confident that the trend will continue into 2026.
Valve’s Steam Machines could shake up the console market if priced competitively and done right.
Risks and Headwinds
Rising prices for RAM, GPUs, CPUs, and storage (driven by competition with AI data centers) could make gaming hardware less accessible or more expensive.
Younger audiences are increasingly playing on PCs and mobile devices. If hardware prices rise, those platforms will likely keep gaining ground, and cloud gaming could accelerate as well.
If prices go up due to tariffs or other factors, 38% of buyers would purchase fewer games at full price on launch day, 34% would wait for sales, and 27% would spend more time in F2P games.