XBOX Discs Make Up Only 4% of U.S. Physical Game Sales

XBOX physical game sales now account for just over 4% of new physical video game sales in the U.S., putting Microsoft far behind Nintendo and PlayStation.

The latest figures come as the broader games industry continues moving toward digital distribution. Sony recently said it won’t publish games on discs starting in January 2028, while its latest financial results showed that 82% of PlayStation game sales were digital.

According to Circana data reported by Kotaku, Nintendo accounts for 63% of new physical game sales in the U.S. in 2026. PlayStation holds 32%, while XBOX sits at just over 4%. PC games make up the small remaining share.

XBOX physical game sales trail Nintendo and PlayStation

The gap shows how small XBOX’s presence has become in the U.S. physical game market.

Nintendo controls almost two-thirds of new physical sales, while PlayStation represents close to one-third. Together, the two platforms account for roughly 95% of the market.

XBOX’s share sits at only a little over 4%.

Several factors could explain the difference. XBOX Game Pass has pushed players toward digital downloads and subscriptions for years, while XBOX hardware and software sales have also declined.

Microsoft has also expanded its first-party games to other platforms, giving players more ways to access XBOX titles without owning an XBOX console.

Another factor could simply be availability. PlayStation and Nintendo may receive more physical releases and larger numbers of retail copies than XBOX.

U.S. physical game spending hits a record July low

XBOX’s decline comes as physical game sales fall across the entire U.S. market.

Spending on new physical software reached just $85 million in July 2026. According to Circana, that was the lowest July total it has ever recorded.

January 2026 also produced an all-time January low for physical software spending.

The figures suggest that XBOX is not alone in losing physical sales. Players across all major platforms continue shifting toward downloads, subscriptions, and other digital purchasing options.

Overall U.S. gaming content spending fell 9%

The slowdown also affected the wider gaming market.

Total U.S. gaming content spending dropped 9% year-over-year in July. The figure includes physical and digital games, console and PC content, mobile gaming, and subscriptions.

Mobile spending recorded a particularly large decline.

Subscriptions stood out as the only category that increased, adding another sign that recurring digital services continue gaining ground even as other forms of gaming spending weaken.

That trend could benefit Microsoft, which has built much of its current gaming strategy around Game Pass and digital distribution.

XBOX could have little to lose from dropping discs

The latest numbers will likely raise more questions about how long Microsoft plans to support physical XBOX games.

Concerns have already grown that future XBOX hardware could move toward fully digital distribution.

If PlayStation stopped selling physical games today, the move would affect roughly one-third of current U.S. physical game sales. XBOX leaving the disc market would have a much smaller impact based on its current share of just over 4%.

Microsoft has not announced plans to completely abandon physical games, but the sales gap shows how little of the current U.S. physical software market depends on XBOX.

With subscriptions growing and physical spending hitting record lows, the business case for keeping discs around could become increasingly difficult to justify.