Xbox is losing ground in the US physical games market
The share of physical Xbox game sales in the US has dropped to 4%, trailing behind PlayStation and Nintendo. More and more Xbox owners are choosing digital versions, a trend linked to the popularity of the Series S and the Game Pass subscription.
Crius
Xbox accounts for only 4% of physical game sales in the US in 2026, significantly trailing behind PlayStation 5 and Nintendo Switch consoles in this metric. According to a Circana report, most Xbox Series X owners prefer digital versions of games, which is linked to the popularity of the disc-less Series S model and the availability of new games on Game Pass from day one. As a result, physical media for PS5 and Switch 2 remain in higher demand.
Physical Sales Share by Platform
According to Circana's July data, Xbox represents just over 4% of physical game sales. Nintendo systems, including Switch and Switch 2, lead the market with a 63% share, while PlayStation holds 32% of the physical copy market. Xbox consoles are also less popular compared to their competitors: VGChartz estimates that in June, Series X|S accounted for 14% of console sales, lagging behind PlayStation and Nintendo.
The Shift to Digital Formats
Microsoft and Sony are releasing consoles designed exclusively for digital game versions. The more affordable Xbox Series S lacks an optical drive, and according to Circana, by 2024 the number of Series X and Series S owners had become roughly equal. For comparison, by June 2026, 27% of PS5 sales are expected to be digital-only models.
The Impact of Subscription Services
Subscription services like PlayStation Plus and Game Pass are influencing the sales structure. Game Pass offers access to new games on their release day, which is especially important for publishers in the first weeks after launch. This can reduce interest in purchasing physical copies at retail among Xbox users.
Declining Xbox Presence in Retail
Physical stores are reducing their Xbox product assortment, and shelves previously dedicated to Xbox games and hardware are now being allocated to Switch 2 and PS5 products.
Future of Physical Media Support
After news emerged about Sony's plans to discontinue PS5 discs by 2028, the company faced criticism, explaining the move as a response to changing consumer preferences toward digital versions. New Circana data shows that Xbox owners have already largely transitioned to digital formats. Microsoft has not yet commented on Blu-ray support for Project Helix, but there is a possibility of launching a program to exchange physical discs for digital licenses, allowing users to convert their games and, if needed, sell their discs in the future.
