Younger Americans Have Spent 25% Less On Video Games This Year Than Last

Younger Americans are spending 25% little connected video games contiguous than this clip past year.

That's according to a study by The Wall Street Journal, which utilized information from marketplace probe institution Circana to analyse the spending habits of young Americans.

While spending was down 13% crossed the committee from January to April 2025 for 18- to 24-year-olds — peculiarly connected accessories, technology, and furniture, which fell by 18%, 14%, and 12%, respectively — video crippled spending saw the largest fall. This is not a inclination observed successful older property groups.

Spending besides dropped successful the categories of prestige beauty, covering and apparel, and sports equipment.

Young Americans are spending little wealth connected video games. Photographer: Ariana Drehsler/Bloomberg via Getty Images.

The WSJ posits that "a operation of economical challenges is driving the decline," with graduates struggling to find employment and recognition paper delinquency rates highest for 18- to 29-year-olds.

"Young grads are having a overmuch tougher clip uncovering jobs," the study reads. "Student-loan payments are restarting for millions of borrowers. Over astir the past year, credit-card delinquency rates person risen to their highest points since earlier the pandemic, and are highest for those 18-29, according to the New York Federal Reserve."

It's worthy noting that the clip play featured successful the survey does not see the June motorboat of the Nintendo Switch 2, which volition boost the figures. And adjacent year's motorboat of Grand Theft Auto 6 is expected to acceptable records for user spending not conscionable connected video games, but each of entertainment.

Meanwhile, the outgo of gaming has gone up, with immoderate publishers moving to $80 for video games, consoles rising successful price, and in-game monetization becoming much aggressive. Circana's Mat Piscatella took to societal media to accidental radical are inactive turning up to play video games, "but engaging much with free-to-play connected devices they already person entree to."

The study comes astatine a clip of large instability crossed the games manufacture contempt grounds profits. Around 2,800 crippled devs person mislaid their jobs successful the archetypal fractional of 2025 alone, connected apical of 14,600 cuts successful 2024, and 10,500 successful 2023.

That 2025 fig does not see yesterday's shocking quality that Microsoft plans to laic disconnected astir 9,100 people, with immoderate of the cuts hitting Microsoft's gaming business. It laid disconnected 1,900 unit successful January 2024, past made further cuts conscionable a fewer months aboriginal erstwhile it closed Redfall developer Arkane Austin and Hi-Fi Rush developer Tango Gameworks. In September 2024, Microsoft chopped a further 650 unit from its gaming business. And successful May this year, Microsoft chopped an eye-watering 6,000 staff, oregon 3% of its full workforce.

In the aforesaid connection that informed unit astir the cuts, Xbox brag Phil Spencer said that helium "recognize[d] that these changes travel astatine a clip erstwhile [Xbox] person much players, games, and gaming hours than ever before."

Photographer: Ariana Drehsler/Bloomberg via Getty Images.

Vikki Blake is simply a newsman for IGN, arsenic good arsenic a critic, columnist, and advisor with 15+ years acquisition moving with immoderate of the world's biggest gaming sites and publications. She's besides a Guardian, Spartan, Silent Hillian, Legend, and perpetually High Chaos. Find her astatine BlueSky.