Young Americans aged 18 to 24 have reduced their spending on video games by 25% compared to the previous year, according to a report by The Wall Street Journal based on data from market research firm Circana. This decline is part of a broader 13% drop in spending across various categories including accessories, technology, and furniture, but video games experienced the steepest decrease.
The report attributes this trend to economic challenges faced by young adults, such as difficulties in finding employment and rising credit card delinquency rates, particularly among those aged 18 to 29. Student loan repayments have also resumed for millions, adding financial pressure.
Despite the downturn, the study period does not cover the recent launch of the Nintendo Switch 2, which is expected to boost sales figures. Additionally, the upcoming release of Grand Theft Auto 6 is anticipated to break records in consumer spending across entertainment sectors.
The cost of gaming has increased, with some publishers raising game prices to $80, console prices climbing, and more aggressive in-game monetization strategies. Circana’s analyst Mat Piscatella noted that while people continue to play games, there is a shift towards free-to-play titles on existing devices.
The gaming industry is also experiencing significant instability, with thousands of job cuts reported in 2023, 2024, and the first half of 2025. Microsoft alone announced plans to lay off approximately 9,100 employees, including cuts in its gaming division, despite Xbox reporting record numbers of players and gaming hours.
This report highlights the complex economic and industry factors influencing young Americans’ gaming habits and the broader challenges facing the video game market in 2025.
Photographer: Ariana Drehsler/Bloomberg via Getty Images.
