Hardware spending in the US was so low in July that it nearly matched the 2020 pandemic days when everything was out of stock

July 2026 saw US hardware spending hit levels close to the 2020 pandemic, according to Eurogamer, with console sales reaching the lowest point since that period. Kotaku reported the month as the worst for console sales in the United States since the pandemic, linking the decline to a RAM shortage that has disrupted production across the industry. IGN noted that dollar sales of physical video‑game software fell to an all‑time July low of $85 million, underscoring the weakness in the physical market. Push Square added that despite the overall slump, Sony’s PlayStation 5 managed to out‑sell Nintendo’s Switch 2 in dollar terms, while Bloomberg.com highlighted the Switch 2 as the leading factor in the broader console sales decline. Coverage across the five outlets converges on the same set of data points while emphasizing different angles. Kotaku focuses on the RAM crisis as the root cause, describing it as a factor that “ruins everything.” Push Square zeroes in on the competitive dynamic between the PS5 and Switch 2, noting the PS5’s advantage after a backlash against physical discs.

IGN provides the specific figure for physical software revenue, $85 million, framing it as an unprecedented dip. Bloomberg.com frames the Switch 2 as the primary driver of the slump, labeling the month the worst July since Covid. Eurogamer supplies the broader macro view, comparing current hardware spending to the 2020 pandemic scarcity. The reference to 2020 pandemic days signals that the current dip mirrors a period when global supply chains were severely disrupted and many consumer electronics were out of stock. The RAM crisis mentioned by Kotaku suggests a shortage of memory components that manufacturers rely on for consoles, a situation that can delay shipments and reduce inventory. The “physical disc backlash” cited by Push Square indicates consumer resistance to disc‑based media, which may be accelerating the shift toward digital distribution, a trend reflected in the sharp drop in physical software sales reported by IGN.

Together, these factors create a confluence that depresses overall hardware expenditure, as highlighted by Eurogamer’s comparison. Future reporting will likely track whether the RAM shortage eases and how that impacts console availability and sales volumes in the coming months. Observers will also watch for any changes in consumer preference for physical versus digital game formats, especially if the disc backlash intensifies. Analysts will monitor quarterly hardware spending figures to see if July’s near‑pandemic low proves an isolated dip or the start of a longer‑term contraction, with particular attention to the performance of the Switch 2 and PS5 as the market adjusts.