Video Game Spending Decreased By 25% Among Young Americans, Likely Due To Rising Costs

Expert Verified By

The expenditure on games is declining faster than any other industry.

Story Highlight
  • Young adults in the US have spent 25% less on video games, showcasing a sharp decline.
  • All demographics are spending less on games, and expenditure on the industry is declining much faster compared to other fields.
  • The rising costs of hardware and software are a major cause of this decline.

It feels like every year, video game prices are increasing by a few Dollars, and in no time, we will see games retail for $100. With PlayStation and Capcom already suggesting a $80 price tag for its premium offerings, this future does not seem that far off. 

However, this trend is likely to affect the purchasing power of consumers. As it turns out, it’s already making a dent in the industry’s most popular demographic: young adults. 

Why This Matters: The younger generation has always been the most vocal supporter of video games, and a decline in their purchasing power is detrimental to the medium.

gta 6
Many worry GTA 6 will be a $100 game.

According to a report from The Wall Street Journal, video game spending has decreased by a whopping 25% in the United States among people between the ages of 18 and 24. Other age groups have also seen a decline in spending, but the decline is significantly less steep compared to young adults. 

Furthermore, young adults in the US are also spending 13% less on brick-and-mortar stores related to the gaming industry, while the purchasing power of every other demographic is increasing in this specific facet. 

This sharp decline is attributed to several reasons, according to the report, and can be attributed to a struggling job market, substantial student loan debt, and considerable credit card debt.

To paint an even more concerning picture, this expenditure on gaming is declining faster in the 18-24 age bracket than in other areas, such as accessories, housewares, and technology. Hence, it seems like young adults are prioritising essentials amid rising costs of video games.

Circana game spending USA
Circana’s research on video game spending.

Circana also collected this data in April, a time when many companies were raising prices, with PlayStation increasing the cost of PS Plus and Nintendo raising the price of Switch 2 accessories. Therefore, as it turns out, increasing prices are turning players away.

How do you think the gaming industry will be able to combat this decline in expenditure? Please share your thoughts in the comments below or visit the Tech4Gamers forum for further discussion.

Was our article helpful? 👨‍💻

Thank you! Please share your positive feedback. 🔋

How could we improve this post? Please Help us. 😔

Gear Up For Latest News

Get exclusive gaming & tech news before it drops. Sign up today!

Join Our Community

Still having issues? Join the Tech4Gamers Forum for expert help and community support!

Latest News

Join Our Community

104,000FansLike
32,122FollowersFollow

Trending

KCD2 Dev Supports Stop Killing Games, Says It Cares About Making Games That Players Can Return To

The developer of KCD2 supports the Stop Killing Games initiative, as it aims to create games that players can return to again and again.

Ubisoft CEO Blames Organized Campaigns of Criticism Against Its Games

Ubisoft yet again blames gamers for the hate it receives, ignoring the mistakes it has made in the past few years.

Ubisoft Execs Say Assassin’s Creed Shadows Has Set The Bar For Their Future Games

Ubisoft boss says that Assassin's Creed Shadows launch was a defining moment, and it has set the bar for their future open-world games.

FromSoft Is Working On A Dark Souls 3 Remaster Planned For 2026, It’s Claimed

As per a notable media outlet, FromSoft is currently working on a Dark Souls 3 remaster, which will release in 2026.

Gabe Newell Urges Devs To Master AI Urgently or They Won’t Survive

In a new Q&A, Newell emphasized that people who understand and learn about AI will be more valuable in the long run than veteran programmers.