After several years of normalization following the pandemic boom, the US video game market could be heading back into record-breaking territory.
According to a report from Circana, US consumer spending on video games is expected to rise 3% to $62.8 billion in 2026. If that forecast holds, it would surpass the previous all-time high of $61.7 billion set in 2021 during the lockdowns.
For context, total US consumer spending across hardware, content, and accessories reached $60.7 billion last year, representing a 1.4% increase year-over-year. Growth hasn’t been explosive, but it has been steady, and 2026 could be the year it skyrockets.
What’s Driving The Surge?
Why the sudden increase in 2026? Well, there are a few reasons why.
Firstly, the continued momentum of the Switch 2. The Nintendo console launched in June 2025 and became the fastest-selling system in the US in just seven months. And Circana forecasts that it will continue to sell even more.
Then, there is GTA VI, the most anticipated game of the last 5 years. This game alone is expected to drive massive traffic into the video games market. It won’t be limited to just online games either, but it could also increase hardware sales across the board. Major releases have historically lifted the entire market, and GTA 6 could be one of the biggest catalysts in years.
Subscription services are also projected to play a key role. As digital ecosystems continue to mature, recurring revenue models are becoming an increasingly stable pillar of overall spending.
That said, the outlook isn’t without risk.
Circana notes that rising component costs could pressure hardware performance in 2026. There are already signs of strain in certain areas of the market, including stock challenges affecting devices like the Steam Deck OLED in some regions. The decrease in Steam stock is already an alarming sign.
On the software front, GTA 6 isn’t the only heavy hitter expected to contribute to growth. Highly anticipated titles like Resident Evil: Requiem, Pokémon: Pokopia, Forza Horizon 6, and Marvel’s Wolverine are also projected to significantly impact spending. In short, 2026 is going to be a big year for video games.
