Soccer has major competition in the US.
Because these sports started in America too, America usually dominates them.
It appears the sports industry in US skewed local preferences toward hardware-intensive sports, that sell lots of gear. Poor children can start playing soccer stuffing crumpled paper in plastic bags to create a makeshift ball, and using spaced sandals as makeshift goalposts. Minimal hardware requirements. It's harder to play baseball or football without all assortment of costly bats, helmets, gloves, et cetera. Basketball comes closer to soccer in this regard.
Right around the 80’s and 90’s the idea of zero-tolerance youth crime policies swept the US. Right around the same time the popularity of baseball began a decline in the US. It went from being a universally played ‘pickup culture’ sport, to a sparsely played ‘pay to play’ sport.
Now I’m not gonna say the need for 8 or 9 boys to roam around a neighborhood with a giant stick looking for a place to play was the reason the ‘pickup culture’ games died. But I will say that it was probably a lot safer for those boys to just go to a basketball court and wait their turn in a ‘pickup culture’ game that did not require a giant stick or bat.
In practice, casual football isn't any more resource heavy than soccer. Most non-league games of football are going to be "touch football", which only requires a ball, a field, and some sort of end marker (as a kid, it was usually just "from that tree to that other tree").
Obviously, organized league play has a ton more equipment, but the sort of informal casual games that kids or young adults play requires much less. It's one of those things that doesn't really get talked about a ton compared to league play, so it's easy to miss for those who didn't grow up with it.