- 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.
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 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.
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Shameer Sarfaraz has previously worked for eXputer as a Senior News Writer for several years. Now with Tech4Gamers, he loves to devoutly keep up with the latest gaming and entertainment industries. He has a Bachelor’s Degree in Computer Science and years of experience reporting on games. Besides his passion for breaking news stories, Shahmeer loves spending his leisure time farming away in Stardew Valley. VGC, IGN, GameSpot, Game Rant, TheGamer, GamingBolt, The Verge, NME, Metro, Dot Esports, GameByte, Kotaku Australia, PC Gamer, and more have cited his articles.
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