Young People Don’t Spend Money on Games
Young people’s interest in video games hasn’t changed, but their spending habits are undergoing a radical transformation. Gaming spending among 18- to 24-year-olds in the US fell by almost 25 percent in the first four months of the year compared to the previous year. In contrast, spending levels among older gamers remained largely stable, with some groups even seeing increases. Experts attribute this difference to both economic hardship and shifting consumption priorities.
Youth Are Taking a Step Back in Gaming Spending
According to Circana’s latest report, young adults are experiencing a significant spending contraction, particularly in the gaming sector. Student loan repayments, challenging job opportunities, and rising credit card debt are among the primary factors constraining young people’s budgets. New York Federal Reserve data reveals that credit card delinquency rates have reached their highest level since before the pandemic, with this rate most pronounced among the 18- to 29-year-old age group.
Economic pressures are impacting not only games but also other consumption categories. Young people spent 14 percent less on technology, 20 percent less on accessories, and 12 percent less on furniture. However, the decline in video games saw the sharpest decline, outpacing all other items.
In contrast, consumers over the age of 24 did not see a decline in spending, while some groups experienced small increases in various areas, from technology to general consumer goods. High-income consumers, in particular, are increasingly holding a growing share of the video game market. Households earning $100,000 or more annually purchased 36 percent of gaming hardware sold in the US in the third quarter of 2024, compared to 29 percent in the first quarter of 2020.
Experts predict that this trend could alter the marketing strategies of gaming companies in the coming period. More expensive consoles, higher-priced games, and rising costs of living may drive young gamers toward free-to-play games, mobile platforms, and affordable PC games. The Nintendo Switch 2’s record sales despite its high price shows that demand is still there, but purchasing power has changed hands.
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