Young Americans are spending less on video games than any other age group, according to new data from market research company Circana.
The Wall Street Journal report, shared by GamesIndustry, analyzes American consumers’ self-reported weekly expenditures across categories. Data shows U.S. consumers aged 18 to 24 — a subset of Generation Z — are spending nearly 25% less on video games than they did just one year ago.
Gen Zers are cutting costs across the board, with tech accessories and small appliances comprising the cohort’s second- and third-largest spending reductions.
Gen Zers are also spending less at traditional retailers, according to the report. The group’s spending at brick-and-mortar stores dropped 13% year-over-year between January and April 2025.
Comparatively, elder generations are also spending less, but haven’t made the same dramatic cutbacks as Gen Z consumers.
This spending discrepancy breaks down the impact of young Americans’ looming economic woes, like student debt, a suboptimal job market, and rising living costs. What’s more, rising prices associated with gaming — $80 new releases, peripheral price hikes, inflated asking prices for years-old hardware — likely compound young gamers’ spending apprehension.
Consumer pullback could potentially complicate an already-tumultuous gaming industry. Despite record-high profits, shareholders and CEO are increasingly turning to generative AI to aid in their pursuit of endless year-over-year growth. Many industry teams have reported layoffs since the start of the year, with some rounds eliminating thousands of human employees.
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2 responses to “Gen Z video game spending plummets”
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