Several new games debuted in the top 20, like WILD HEARTS, Like a Dragon: Ishin!, and Kirby's Return to Dream Land Deluxe.
Infinity Ward's shooter also topped US charts for the month, followed by God of War Ragnarok, Pokemon Scarlet and Violet, and Sonic Frontiers.
Bayonetta 3, Mario + Rabbids Sparks of Hope, NHL 23, and more also ranked in the top 20 best-selling titles for the month.
Dollar sales for video game hardware reached $362 million last month, a 12 percent increase over last year, though year-to-date spending is down.
Digimon Survive was the eighth best-selling title in the US for July, despite only being available for two days during the tracking period.
It's the fourth highest unit-selling console in US history and the sixth best unit-selling video game hardware overall, as per The NPD Group.
However, Call of Duty: Vanguard finished the year on top with the franchise being the best-selling in dollar sales for the 13th consecutive year.
Though the PS5 tied with the Switch in dollar sales, the latter was the clear leader in hardware unit and dollar sales for the entirety of 2021.
Call of Duty: Vanguard and Battlefield 2042 were also the first and second best-selling titles of the month despite mixed receptions from fans.
Nintendo's console lead in unit sales for the month and year-to-date but the PlayStation 5 topped both in terms of dollar sales.
It's Sucker Punch's fastest selling game till date and the fifth best-selling title year-to-date.
Hardware spending continues to decline, totaling $183 million for the month.
However, Dragon Ball Z: Kakarot is still the best-selling game of the year.
Star Wars Jedi: Fallen Order comes in at second as total spending hit nearly $3 billion in the US.
The NPD Group's Mat Piscatella doesn't see next-gen hardware cannibalizing Switch sales in 2020.
Since Destiny 1 launched in 2014, it's been the seventh best-selling franchise in terms of tracked sales.
NBA 2K20, Madden 20, Borderlands 3 and Mortal Kombat 11 expected to round out top five.
Crash Team Racing: Nitro-Fueled saw the "highest launch month total" in the franchise's history.
The Switch is the only platform currently showing year-on-year growth, as per the NPD Group.
Overall hardware spending was at $149 million for the month, down 20 percent compared to last year.