Recent data from analytics firm Circana reveals a dramatic shift in gaming purchase habits among young adults. Video game spending by Gen Z (ages 18–24) has plummeted by approximately 25% in the first four months of 2024 compared to the same period last year.
The drop stands in stark contrast to other age demographics, which experienced only minor declines of less than 5%. This trend was highlighted in a Wall Street Journal report and confirmed by Circana’s industry analyst Mat Piscatella.
Economic pressures appear to be a major factor driving this spending decline. Gen Z faces a challenging job market, mounting student loan debt, and skyrocketing housing costs. With basic necessities consuming more of their income, many young adults simply can’t justify spending $70–90 on new game releases.
“I’m doing better than most in my age group, but dropping full price on games is getting harder,” one Gen Z gamer commented. “It’s become a real choice between having enough money for the week or buying a $60–70 video game I might not even finish.”
The spending decrease isn’t limited to games alone. Gen Z has also cut back on gaming accessories, technology, and general merchandise, though the decline is most pronounced in game purchases.
Free-to-play titles have become the go-to alternative for budget-conscious young gamers. Games like Fortnite, League of Legends, and Roblox offer substantial entertainment without upfront costs. Many Gen Z players now concentrate their time on a select few live service games rather than purchasing multiple new releases.
Subscription services have further reduced the need to buy individual games. Xbox Game Pass and PlayStation Plus provide access to extensive libraries for a monthly fee, making it easier to try various titles without committing to full-price purchases.
The rising cost of new games has also turned off younger buyers. AAA titles now routinely launch at $70 in the US and even higher in markets like Canada and Europe. Some games then add paid DLC and cosmetics on top of the initial price tag.
From whales to wails
The industry has noticed this shift, with some publishers focusing more on squeezing the most out of “whales” (high-spending players) instead of chasing bigger sales numbers. This strategy might make budget-focused gamers feel even more left out.
Physical media remains important for many price-sensitive players. Buying, trading, and reselling game discs helps offset costs, with some young gamers pooling resources or sharing games to make their hobby more affordable.
