A recent report revealed that Americans will spend more on gaming devices in 2025 compared to last year, mainly due to the launch of the Nintendo Switch 2 and the impact of tariffs. Device sales exceeded $312 million in the United States in August, marking a huge 32% increase over August 2024, according to Sircana.

This rise is exceptional, especially considering the relative decline in sales of PlayStation 5, Xbox Series, and the original Switch devices by double-digit percentages year-over-year.

The Switch 2 is the key driver of this growth, with sales surpassing 2.4 million units in the U.S. during its first three months on the market, making it the fastest-selling gaming device ever. It surpassed the previous record holder, the PlayStation 4, by a full 5% after three months. Compared to the original Switch, the Switch 2 achieves overwhelming sales, outperforming its predecessor by 77% at this stage of its life cycle.

Consumer spending on gaming devices in the U.S. reached $2.9 billion this year, a 20% increase over last year. While the number of devices sold rose by 6.5% year-over-year, most of the spending increase is attributed to a 12.3% rise in prices.

Device costs saw significant increases, with the Xbox Series S 512GB price rising from $299.99 to $399.99, and the fully digital Series X priced at $599.99. All PlayStation 5 models also saw a $50 price increase.

Despite the price hikes, with the most expensive Xbox Series X reaching $799.99, consumers have not backed away from purchasing, noting that this price level remains much lower than the equivalent launch price of the Neo Geo device in 1990.