02.07.2025

A report indicates a significant decline in video game spending among young Americans

According to a recent Circana report, Americans aged 18-24 have significantly reduced their weekly spending on video games, with a nearly 25% decrease compared to the previous year. This information was highlighted by the Wall Street Journal.

While other age groups have experienced smaller reductions in game-related expenses, the younger demographic in the US faces distinct financial pressures, affecting their spending habits. From January to April 2025, Circana noted a 13% year-over-year drop in spending by this age group at both online and physical retail locations. In contrast, spending among older age brackets continues to rise, albeit at a slower pace.

Factors such as employment challenges, repayments on student loans, and mounting credit card debt contribute to these spending constraints among young Americans. The Bank of America observed that, unlike historical trends, spending within this group is decreasing modestly.

Interestingly, Circana's data for the four-week period ending in April 2025 shows a more rapid decline in gaming expenditures among 18-24-year-olds compared to other technology segments.

This trend is unfolding against the backdrop of rising prices in the gaming industry. Recently, Xbox increased console prices, as detailed here, with new game releases, such as The Outer Worlds 2, now set at $80.

Similarly, Nintendo's latest Switch 2 release, Mario Kart World, is priced at $80, while its next flagship game, Donkey Kong Bananza, will retail for $70.

gamesindustry.biz
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