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New study shows that Gen Z is spending way less money on videogames than older gamers
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New study shows that Gen Z is spending way less money on videogames than older gamers
Stevie Bonifield
10 August 2025
Young people can't even afford gaming anymore.
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Young people are so strapped for cash that even video games are getting too expensive for them. A June study by Circana, first reported by the Wall Street Journal, found that spending among 18-to-24-year-olds dropped by 13% from January to April 2025 compared to last year. Video game purchases were hit particularly hard, falling nearly 25% according to a chart Circana's Mat Piscatella shared on BlueSky.
For context, Piscatella shared another chart comparing the drop in spending among Gen Z to spending changes in older generations. The difference is dramatic. Where older generations' spending dropped less than 5%, Gen Z's is plummeting. It's particularly surprising to see such a sharp drop in spending on video games, which historically cater toward young people.
Video game spend among 18 to 24's is down sharply.
"Young grads are having a much tougher time finding jobs. Student-loan payments are restarting for millions of borrowers... credit-card delinquency rates have risen to their highest points since before the pandemic..."
www.wsj.com/personal-fin...— @matpiscatella.bsky.social (@matpiscatella.bsky.social.bsky.social) 2025-08-10T21:01:24.815Z
This is part of a larger trend resulting from a perfect storm of harsh economic factors hitting Gen Z all at once, from a tough job market to student loans and rising prices. As Piscatella commented on BlueSky, "The rug's not just being pulled out from under young people, it's being burned while they're still standing on it."
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'Patient gaming' only gets more attractive when $70 games get heavy Steam sale discounts just months after launch
The Outer Worlds 2 director offers the most sympathetic answer I've yet heard for the $80 game question: 'We don't set the prices for our games,' and 'You'd have to honestly talk to the Xbox folks'
Battlefield 6 probably isn't going to cost $80: 'We're not looking to make any changes on pricing at this stage,' EA CEO says
Rising prices in the gaming industry are likely only making matters worse. If young adults are having a hard time justifying gaming purchases already, $70 or $80 becoming the new norm for AAA games isn't going to help. The same applies to consoles and PC hardware getting more expensive (I'm looking at you, Switch 2).
That doesn't mean young people aren't still gaming. As of March 2025, 28% of gamers are between 18 and 29 years old. Gen Z is still a huge part of the gaming community, they're just spending less money than older generations, possibly opting for more free-to-play games, buying less expensive indie games, or waiting for sales.
The rise of less expensive, co-op focused "friendslop" games such as Peak, Repo, and Lethal Company might actually be a sign of the times, too. These games are usually very affordable—around $10 or less—and act as a way for players to socialize and goof around together without having to go out or spend loads of money. Most "friendslop" games don't even require a particularly powerful PC, further lowering their barrier to entry.
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Stevie Bonifield
Contributor
Stevie Bonifield is a freelance tech journalist specializing in mobile tech, gaming gear, and accessories. Outside of writing, Stevie loves indie games, TTRPGs, and building way too many custom keyboards.
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'Patient gaming' only gets more attractive when $70 games get heavy Steam sale discounts just months after launch
The Outer Worlds 2 director offers the most sympathetic answer I've yet heard for the $80 game question: 'We don't set the prices for our games,' and 'You'd have to honestly talk to the Xbox folks'
Battlefield 6 probably isn't going to cost $80: 'We're not looking to make any changes on pricing at this stage,' EA CEO says
Graphics card prices are totally ridiculous and it's creating a barrier to entry that makes me fear for the future of PC gaming
PC's sky-high growth has carried Japan's games market on its back for 7 years, but the forecast is it's set to slow down
'Knowing Steam players are hoarders explains why you give Valve that 30%,' analyst tells devs: 'You get access to a bunch of drunken sailors who spend money irresponsibly'
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