Of all the platforms, Xbox is the only one to have just grown year-on-year - but there’s a big catch

The US video game industry experienced a sharp 21% decline in spending during June 2026, dropping to $4.5 billion from $5.7 billion year-over-year, according to market analysis firm Circana. Hardware sales were hit hardest, plummeting 62% to $383 million, while software fell 12% and accessories declined 21%.

However, Xbox Series X|S bucked the broader industry trend, emerging as the only console platform to achieve year-over-year growth. Xbox unit sales surged 86% compared to June 2025, marking the platform’s strongest month of 2026 to date. The growth was aided by a favorable comparison point—a price increase implemented in May 2025 had significantly dampened June 2025 sales, creating an easier baseline for year-over-year gains.

The broader hardware decline was primarily driven by the Nintendo Switch 2’s performance cliff. The console’s June 2025 launch generated substantial initial sales, making a year-over-year comparison difficult; Switch 2 hardware spending dropped 79% while unit sales fell 78%. PlayStation 5 sales also declined during the period.

This represents a notable turnaround for Xbox hardware, which has struggled with declining sales throughout the current generation. The June results suggest emerging positive momentum for Microsoft’s console line, though observers remain cautious about sustainability. Industry analysts anticipate recovery in the second half of 2026, potentially driven by major releases including Grand Theft Auto 6.

Of all the platforms, Xbox is the only one to have just grown year-on-year - but there’s a big catch

Sources