Young Americans Spending Less on Video Games, Study Finds
▼ Summary
– Weekly video game spending by 18-24 year-old Americans dropped nearly 25% year-over-year, the sharpest decline among age groups.
– Overall spending by this age group fell 13% year-on-year from January to April 2025, while other age groups saw slower growth.
– Factors like a tough job market, student loans, and credit card debt are pressuring young Americans’ spending.
– Gaming spending is declining faster than other categories for 18-24 year-olds, outpacing even general technology trends.
– The drop coincides with rising video game costs, including higher console prices and $80 game releases like *The Outer Worlds 2* and *Mario Kart World*.
Young Americans are tightening their budgets when it comes to video game purchases, with new data revealing a significant decline in spending among 18-24 year-olds. According to a recent report from market research firm Circana, weekly gaming expenditures for this demographic have plummeted by nearly 25% compared to the previous year, a much steeper drop than seen in older age groups.
The broader spending habits of young adults tell a similar story. Between January and April 2025, overall retail purchases, both online and in physical stores, fell by 13% for this group. Meanwhile, spending among other age brackets continues to grow, albeit at a slower pace. Analysts point to multiple financial pressures contributing to this shift, including a competitive job market, student loan obligations, and mounting credit card debt.
Bank of America’s findings reinforce this trend, noting that discretionary spending among young adults is declining rather than increasing, breaking from historical patterns. What stands out in Circana’s data, however, is that gaming expenditures are falling faster than other categories, including general technology purchases.
This downturn coincides with rising costs in the gaming industry. Major console manufacturers have recently hiked prices, Xbox raised the cost of its systems, and upcoming titles like The Outer Worlds 2 will debut at $80. Nintendo is following suit, pricing Mario Kart World for the Switch 2 at the same premium, while Donkey Kong Bananza will launch at $70.
As budgets tighten and game prices climb, young gamers appear to be prioritizing essentials over entertainment, a shift that could reshape spending trends in the industry.
(Graphic: WSJ data visualization showing year-over-year spending declines by age group.)
(Source: Games Industry)
