Study Finds Gen-Z Reduces Gaming Expenditure Significantly

A recent analysis by market research firm Circana indicates a noticeable decrease in video game spending among younger demographics compared to older gamers.

Video Game Spending Trends Among Younger Generations

The year 2025 has already brought a host of immersive and popular titles, such as Clair Obscur: Expedition 33, Elden Ring Nightrein, and the anticipated Nintendo Switch 2, keeping many players engaged. Despite these exciting releases, young consumers are reported to be tightening their budgets across multiple sectors.

Data from Circana reveals a striking trend: individuals in the 18 to 24 age group, commonly referred to as Gen-Z, have reduced their weekly expenditure on video games significantly. Specifically, their spending has dropped nearly 25% compared to figures from 2024.

Declining Purchases and Economic Factors

According to an informative piece in the Wall Street Journal, spending trends reveal that overall video game purchases have decreased by approximately 13% from January through April year-on-year, with younger consumers particularly affected.

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…

— Mat Piscatella (@matpiscatella.bsky.social) 2025-07-01T14:25:35.367Z

Matt Piscatella, an executive director and video game industry analyst at Circana, shared a graph on social media highlighting this trend in spending discrepancies across various age groups. The data shows that spending among older generations has decreased by less than 5%, while younger gamers face a much steeper decline.

Overall, purchasing by 18-24s has plummeted, especially when compared to other age groups.

— Mat Piscatella (@matpiscatella.bsky.social) 2025-07-01T14:27:11.144Z

The Wall Street Journal attributes this downturn to several economic pressures facing the younger generation. Many are finding it increasingly challenging to secure employment, student loan repayments are resuming for a vast number of borrowers, and credit card delinquency rates are at peaks not seen since pre-pandemic times.

However, it is essential to note that young consumers are not entirely abstaining from spending. A survey conducted earlier this year indicated that gacha games remain popular, leading some players to overspend to the point where they struggle to afford rent and other essential expenses.

For additional insights into this developing story, check out the full analysis on Dexerto.