2025 has already produced some very good video games. They would be reason enough to dig deep into your wallet and spend money generously. However, a recent report shows that particularly Gen Z is spending less and less on gaming.
What is this report about? As reported by the Wall Street Journal, the US market research institute Circana has published a report focusing on spending in online and retail.
Notably among Gen Z, specifically among young people aged 18 to 24, video games are setting a negative record.
Accordingly, weekly sales from January to April 2025 have dropped by a full 25% compared to the previous year. Thus, gaming leads the list. Other industries like home goods, accessories, technology, or merchandise are facing smaller losses.
An overview can be seen in the following graphic. On the left, the individual categories are displayed, and on the right, the percentage loss or gain in spending compared to the previous year. All bars on the right side of 0 represent increased spending, while all bars on the left side indicate decreased spending. The dark blue bars represent Gen Z, and the light blue bars represent all other age groups:
Particularly striking is the fact that sales of games among other age groups have dropped significantly less. Here, it’s hardly a 2% decline.
Lack of quality in current releases is unlikely to be the reason. After all, during the investigated months of January to April, several acclaimed titles were released. Among them are Clair Obscur: Expedition 33, Split Fiction, Blue Prince, Kingdom Come Deliverance 2, or Monster Hunter Wilds.
However, those who played Clair Obscur: Expedition 33 were often left with a strange emptiness:
What are the reasons for the declining numbers? On Reddit, users discuss the report and speculate on why Gen Z’s purchasing power is decreasing so significantly.
The elephant in the room is, of course, the rising prices in various aspects of life, such as rent, energy, or food.
Moreover, video games are also getting more expensive—Nintendo recently caused a stir with a new pricing policy, asking nearly 90 Euros for Mario Kart World. It remains to be seen to what extent other publishers will follow suit. But it is already feared that a top title like GTA 6 could break the 100-Euro mark next year.
On Reddit, users find more reasons:
- “Spending among 18- to 24-year-olds has decreased in all categories listed. Gaming was hit the hardest, as it is the least essential,” writes Rhodie114.
- “Money, of course. But isn’t the competing screen time also a problem? Like TikTok, YouTube, and Twitch. There are so many people who would rather watch someone else play than play themselves,” speculates FabJeb.
- “I won’t buy anything new for 70 to 80 dollars when I can buy it on sale in six months. Plus, most of my friends are playing games that are already 5, 10, or more years old. Why should I buy new multiplayer games when none of my friends will play or buy them?” explains pgherg1.
- “Isn’t Gen Z primarily playing freemium live-service games?” wonders UrbanAdapt and mentions another possible reason for the declining sales.
In fact, popular titles like Fortnite, Roblox, or League of Legends can be played completely for free. Spending there is optional.
What impact the declining sales among young people will have on the industry in the long term remains to be seen. It doesn’t seem to be due to the actual quality of current releases. What do you think about the topic? Do you notice a similar trend in yourself? Feel free to write it in the comments. Perhaps the decline is due to another hobby: Gen Z is currently excited about golf and tennis – but the boomers wish they would just go away
