Physical Game Sales Rise for First Time Since 2009, But Don’t Celebrate Yet

If you’re like me and still hold onto the romantic ritual of going to a local store to pick up a brand-new game in its physical form, unboxing it on your way home, and sliding the disc into your console, you might want to savor those moments while you still can.

For years, the gaming community has been watching the gradual decline of physical media, feeling like a complete relic of the past in an era dominated by instantaneous digital downloads. However, some shocking new data just dropped, giving physical software preservationists a sudden glimmer of hope – though you definitely shouldn’t start popping the champagne just yet.

The Decades-Old Trend Finally Breaks

According to a new report from tracking firm Circana, a market research company that tracks consumer spending across the United States, physical video game sales in the US actually grew by 3%, reaching a total of $1.6 billion over the 12-month period ending in May 2026.

If you glance over at the official chart data provided by the research, you will notice that this marks the first time the industry has seen year-on-year growth in physical software consumer spending since 2009! Here, take a look:

It sure is a historic milestone, but (there is always a “but”, sadly) the broader context behind it proves that this is merely a temporary lifeline rather than a glorious comeback, and we should definitely look at this 3% bump with a grain of salt. And I’m not even the one saying this, since it comes directly from Matt Piscatella, the senior director and video game industry advisor at Circana, who is closely known for dropping accurate insights into the business.

According to Piscatella’s recent posts on social media, while a 3% bump sounds great on paper, he was incredibly quick to bring everyone back to earth by reminding us that the overwhelming majority of game volume is completely digital now. In fact, things have shifted so heavily toward digital ecosystems that even the second-hand market barely matters to the industry's bottom line anymore.

The real kicker comes when you look at modern console hardware adoption rates across the United States. Piscatella notes that more than half of all Xbox Series consoles currently active in the US do not even feature a physical disc drive. PlayStation isn't trailing too far behind either, with over a quarter of all PlayStation 5 systems sitting in American living rooms being entirely digital.

When the actual machines inside our homes are actively dropping the hardware required to read discs, it becomes increasingly clear that physical software has a strict expiration date. On top of that thought, Piscatella warns us about something that we, as physical media lovers, definitely did not want to hear: “We likely have less than a decade left of physical software.”

Funny enough, we have a powerful example of the industry viewing physical media through a completely different lens with Rockstar Games’ recent announcement regarding GTA 6: the highly anticipated title will not actually feature a physical disc. Instead, it will hit store shelves containing just a slip of paper with a digital download code – a clear example that even when you buy physical, you’re still getting digital!

This is incredibly telling because, for decades, Rockstar was acclaimed for treating physical editions like premium collectibles, always making sure to include beautifully detailed physical maps and thick manual booklets inside the box. However, this recent confirmation tells you everything you need to know about where the industry is heading.

In the end, this surprise 3% spending bump is a nice little nostalgia trip and might even be a little spark of hope, but it doesn't change the entire scenario. Between all-digital console revisions and major publishers cutting the corporate manufacturing fat, physical media is still breathing on borrowed time – but I truly hope Matt Piscatella and I are completely wrong, for the sake of our beloved memories with physical games.