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| Nintendo Switch 2 led U.S. hardware sales in 2025, finishing the year as the top-selling console by revenue. |
By Jon Scarr
After a slower-than-usual start to the holiday shopping period, U.S. video game hardware spending finally picked up in December 2025. According to Circana’s latest data, hardware revenue increased year over year even as unit sales declined, showing that players were still buying. Just more selectively.
Total hardware spending for December reached $1.2 billion, up 6% compared to last year. Unit sales, however, fell 8%, while the average selling price climbed 18%. That gap tells a clear story: fewer systems moved overall, but the ones that did sell skewed toward higher-priced hardware.
Across the full year, hardware spending finished 9% higher than 2024, ending 2025 at $5.4 billion.
Nintendo Switch 2 Continues Its Early Momentum
The biggest story in the hardware data remains the Nintendo Switch 2.
According to Circana’s tracking, the system led U.S. hardware sales in both December and the full 2025 calendar year, closing out its first seven months on the market with an installed base of 4.4 million units in the United States.
That puts Nintendo Switch 2:
- 35% ahead of PlayStation 4’s pace at the same point in its lifecycle
- On track as the fastest-selling console hardware in Circana’s tracking history
- Nearly double the original Switch’s launch-period performance
Mat Piscatella later clarified that while the Game Boy Advance still holds the record for fastest-selling hardware platform overall, Nintendo Switch 2 is now the fastest-selling console hardware through its first seven months.
It’s an impressive start, especially in a market that has otherwise been cooling off.
PlayStation 5 Holds Its Ground as Pricing Shapes Buying Decisions
PlayStation 5 finished December in second place for hardware sales, with pricing playing a major role in maintaining momentum.
Holiday discounts helped keep PS5 competitive during a season where buyers were clearly more cautious. The data suggests that price sensitivity is now a bigger factor than it was earlier in the generation, especially as players balance hardware upgrades against rising software and subscription costs.
PS5 may not have led the month, but it continued to perform well in both unit sales and overall revenue.
Higher Prices, Not Higher Volume, Drove Growth
One of the clearest takeaways from December’s numbers is that growth didn’t come from more people buying consoles. It came from how much they spent when they did.
Circana’s data shows:
- Hardware revenue increased
- Unit sales declined
- Average prices rose significantly
That pattern has shown up repeatedly throughout 2025. Players are buying fewer devices overall, but when they commit, they’re opting for newer hardware, premium models, or bundled offerings.
It also helps explain why Nintendo Switch 2’s timing worked so well. It arrived at a moment when buyers were ready to upgrade rather than wait.
A Strong Finish to a Cautious Year
December ultimately closed out 2025 on a more positive note than earlier months suggested. While much of the year was defined by hesitation and delayed spending, the final stretch showed that interest never disappeared. It just took longer to surface.
With hardware spending rebounding, Nintendo Switch 2 setting an early pace, and pricing playing a larger role in buying decisions, the U.S. market heads into 2026 on steadier ground than it appeared mid-year.
The bigger question now is whether that momentum carries forward, or if this was simply the holiday surge finally catching up.
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