Young individuals today are facing increasing financial hurdles, making video games a costly luxury. According to a recent analysis by Circana, the spending habits of 18 to 24-year-olds have seen a sharp decline of 13% from January to April 2025 compared to the previous year, with video game purchases dropping nearly 25%.

For reference, Mat Piscatella highlighted another notable comparison — where older generations saw spending drops of less than 5%, Gen Z is experiencing a significant decrease. This is particularly striking given that video games have historically attracted younger consumers.

Video game expenditure among individuals aged 18 to 24 is falling significantly. “Young graduates are struggling to find jobs. The resumption of student loan payments affects millions… credit card delinquency rates have reached their highest since the pandemic…”
Source: Wall Street Journal

This trend is not isolated; it’s driven by a mix of severe economic issues faced by Gen Z, including challenges in the job market, student loans, and rising costs. Piscatella noted that “the rug isn’t just being pulled out from under young people; it’s being burned while they’re still on it.”

Yet, this doesn’t mean that younger individuals aren’t engaging with games. As of March 2025, 28% of gamers fall between the ages of 18 and 29. The major difference lies in how they allocate their money, with younger gamers likely gravitating towards free-to-play games and indie titles instead of higher-priced AAA games, which are becoming the new norm priced at $70 to $80.

The emergence of budget-friendly, cooperative games — like Peak, Repo, and Lethal Company, often costing around $10 or less — may reflect shifting preferences as players seek low-cost options that allow for social interaction without substantial financial commitments.