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The New Final Boss: Why Young Americans Are Spending 25% Less on Video Games
Picture this: The new GTA VI Trailer is unveiled, showing off some mind-blowing gameplay for the first time. Explosions, insane details and animations, luxury cars, and interactivity like never before. Greenlighting pre-orders.
But there’s a catch: The price tag shows over $80 for the base version.
Can I even afford this right now? That’s the question many young people are asking themselves. But how did we get here? Let’s dive into the reasons why more and more young gamers are forced to face this daunting enemy.
For years, the world of video games has become much more than just another form of entertainment for young Americans. The medium has turned into a genuine cultural, creative, and social phenomenon. But the latest data shows a sharp decline in the spending habits of many young adults aged 18-24, dropping by 25% annually.
This isn’t due to a lack of interest, but rather the intense economic pressure young people are facing: from the rising cost of living, a saturated job market, and the recent price hike of games to $80. We’ll cover these points in this article, figuring out: how can passionate young gamers keep playing without going broke?
The Stats Don’t Lie: The Great Gaming Cutback
According to the latest data shared by the Wall Street Journal, young Americans between 18 and 24 years old are spending less and less. Video games are getting hit particularly hard, with a steep 25% drop.
Data that, as analyst Mat Piscatella from Circana confirms, shows a similar trend, albeit with a smaller cut. But it still points to a downturn in spending on video games across all age groups from 2024 to 2025. This data emerges from the recent price increases from major publishers like Microsoft and Nintendo, but other factors are also at play.
The Economic Pressure Cooker on Gen Z
The main cause of this decline is a mix of numerous factors. Factors that specifically hit the 18 to 24 age bracket. This group is mainly composed of young adults finishing their studies and entering the workforce. The main factors include:
- Inflation and Cost of Living: With a sharp increase in the cost of living, which, according to Northwestern Mutual, 84% of Americans have felt the pinch of rising prices. Of these, 44% blame inflation as the biggest obstacle to their financial stability. Or more precisely, the phenomenon known as Shrinkflation, which severely impacts the dollar’s purchasing power.
- Student Loan Repayments: This age group is particularly affected by student loan repayments. They have to juggle daily living costs with education expenses. According to the Education Data Initiative, this also causes them to postpone major purchases, like a house, a car, and even starting a business.
- Debt and the Job Market: On top of that, there’s a job market in a major downturn. With salaries that are less and less able to keep up with the cost of living. And a job market that’s extremely competitive and often ruthless. Finding a stable, well-paying job is a huge challenge.
When combined, these factors leave little room in terms of time for gaming. Not to mention a cost that more and more people consider a real Luxury.
80 Wall: When Gaming Becomes a Luxury
Until 2020, the typical price of an AAA game was $60. But in recent years, we’ve seen a jump to $70 for the base game. Accompanied by increasingly popular Season Passes and DLCs, which push the total cost often well over $100. And now in 2025, more and more publishers are announcing the decision to raise prices to $80.
They justify this with ever-increasing development costs. With examples sometimes exceeding $200 Million. However, these costs aren’t always a sign of a quality title. In fact, we’re seeing more and more major flops that make it hard for a young American to justify spending $80 on a mediocre gaming experience. This is increasingly turning the video game market, especially for AAA games, into a luxury for many.
In Conclusion
From what we can see, the decline in spending on video games isn’t necessarily a choice made by gamers. It’s primarily a symptom of a period of major economic downturn, where many Americans have other priorities, often at the expense of their free time and hobbies.
But this doesn’t mean the video game industry is in decline. In fact, just like in video games, gamers are adopting new strategies and tactics. Which we’ll explore in more depth in our very next article. See you on Wednesday!
A video game enthusiast ever since I first got my hands on a Game Boy. Over the years, I've played many different games across various genres, discovering hidden gems and niche titles along the way. I'm also passionate about technology, always up-to-date with the latest news and insight in the PC and Console market. Ready to share and bring you the latest news !
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