Best Buy reported better-than-expected financial results for the last quarter on Thursday.

Consumer sentiment’s been slumping over the last few months, but Americans still went out and bought plenty of new computers, smartphones, and gaming consoles. So what’s driving demand?

Consumers have been weathering high inflation. They’re worried prices will keep rising, and they’re generally not feeling great about the economy.

In theory, that could lead them to pull back spending on discretionary items, including phones, laptops, and video games.

“Technically, yes, it is a discretionary category — and I know very few young adults who think of it that way,” said Julie Ask, an independent tech analyst.

Electronics are essential to a lot of consumers. And they have a shelf life, per Randy Burt, partner and managing director at AlixPartners.

“For PCs, laptops, you're probably on a three- to five-year cycle, generally,” he said.

Lots of people bought new gadgets five years ago during COVID lockdowns. Now, they want new ones with more capabilities, Burt said.

And, really, one gadget in particular in the last few months: The Nintendo Switch 2.

“Gaming was the biggest source of upside in the quarter,” said Matt McCartney, senior equity research associate at Wedbush Securities.

The consoles, he said, got people through the Best Buy doors this summer. Once they were there, they also bought games and accessories.

“That improved foot traffic led to a broader increase in the category,” McCartney said.

The question now is whether that traffic keeps up as tariffs trickle into consumer prices.