A report indicates that spending on video games by young Americans is experiencing a significant decline

Recent findings from Circana indicate a significant year-over-year decrease in weekly video game expenditures by young Americans aged 18-24. The report, highlighted by the Wall Street Journal, shows a nearly 25% reduction in spending within this demographic, contrasting with smaller declines among older age groups. This reflects the financial pressures faced by young individuals in the U.S.

Overall, between January and April 2025, this age group's expenditure at both online and physical stores reduced by 13% compared to the previous year, as per Circana's analysis. While spending in other demographics continues to rise, the pace has slowed.

The Bank of America notes that the spending among young adults is decreasing slightly, diverging from the typical growth seen in past trends. Interestingly, Circana's data reveals that spending on video games for the 18-24 age group is declining more rapidly than in other sectors, even more so than in general technology purchases.

This decline in gaming spending occurs amidst increasing prices in the video games industry. Recently, Xbox has raised the cost of its consoles across its range, with upcoming games prices climbing to $80. The first to reflect this change will be The Outer Worlds 2.

Nintendo has set the launch price for its Switch 2 game, Mario Kart World, at $80. Meanwhile, the new Donkey Kong Bananza title will be available for $70 on the platform.