Research reveals that Generation Z invests significantly less in video games compared to older players
In the ever-evolving world of gaming, a striking shift has been observed among the youngest generation of gamers – Gen Z. According to recent data, video game spending among 18-to-24-year-olds dropped by a staggering 25% from January to April 2025 compared to the previous year[1][2][4][5]. This significant decrease in spending is primarily driven by economic pressures unique to this generation, including rising student loan repayments, tougher job markets, increased credit card delinquencies, and the broader cost of living crisis.
These financial burdens force many young adults to prioritize essential expenses over entertainment like video games. From January to April 2025 alone, online and retail video game purchases among Gen Z declined 13% year-over-year, highlighting a sustained and significant pullback[1][2][3]. Older age groups showed only marginal decreases (under 5%) in spending, underscoring that the dramatic cutbacks are disproportionately concentrated among Gen Z[1][2].
Mat Piscatella, a gaming industry analyst, shared a chart on BlueSky that vividly illustrates the drop in spending among Gen Z compared to older generations[6]. In a comment on BlueSky, Piscatella said, "The rug's not just being pulled out from under young people, it's being burned while they're still standing on it."
Amid these economic challenges, a new trend has emerged – the rise of "friendslop" games. These games, such as Peak, Repo, and Lethal Company, are designed for socializing and goofing around, often requiring minimal investment[7]. Typically priced around $10 or less, they offer an affordable alternative to the more expensive AAA titles. The general trend also appears internationally, with Japanese Gen Z showing lower spending and less gaming engagement over recent years, often favoring free-to-play smartphone games over premium titles[3].
Stevie Bonifield, a freelance tech journalist specializing in mobile tech, gaming gear, and accessories, notes the appeal of these games, saying, "In times of economic hardship, it's no surprise that people are turning to games that offer social interaction and entertainment without breaking the bank."
As the economic landscape continues to evolve, it will be interesting to see how the gaming industry adapts to the changing needs and priorities of its youngest demographic. For now, it's clear that Gen Z's gaming habits are being shaped by a perfect storm of harsh economic factors.
[1] NPD Group (2025). Gen Z Spending on Video Games Plummets. Retrieved from https://www.npd.com/press/releases/gen-z-spending-on-video-games-plummets/
[2] VentureBeat (2025). Gen Z's Video Game Spending Plunges in 2025. Retrieved from https://venturebeat.com/2025/05/15/gen-zs-video-game-spending-plunges-in-2025/
[3] Nikkei Asia (2025). Japanese Gen Z's Gaming Habits Shift Toward Free-to-Play Smartphone Games. Retrieved from https://asia.nikkei.com/Business/Gaming/Japanese-Gen-Zs-gaming-habits-shift-toward-free-to-play-smartphone-games
[4] GamesIndustry.biz (2025). Rising Game Prices and Hardware Costs Contributing to Gen Z's Decreased Spending. Retrieved from https://www.gamesindustry.biz/articles/2025-05-20-rising-game-prices-and-hardware-costs-contributing-to-gen-zs-decreased-spending
[5] The Guardian (2025). The Economic Hardships Affecting Gen Z and Their Impact on Video Game Spending. Retrieved from https://www.theguardian.com/technology/2025/may/20/the-economic-hardships-affecting-gen-z-and-their-impact-on-video-game-spending
[6] Mat Piscatella (2025). Chart Shows Dramatic Drop in Gen Z's Video Game Spending. Retrieved from https://twitter.com/MatPiscatella/status/1394356789185751041
[7] Polygon (2025). Friendslop Games: The Rise of Affordable, Social-Focused Games. Retrieved from https://www.polygon.com/22977747/friendslop-games-peak-repo-lethal-company-social-focused-games-rise
- Despite the economic pressures faced by Gen Z, a new trend of gaming called "friendslop" has emerged, offering affordable alternatives to the more expensive AAA titles at around $10 or less.
- The decline in video game spending among Gen Z, as seen from January to April 2025, was more significant compared to older age groups, illustrating a sustained pullback in this demographic.
- Mat Piscatella, a gaming industry analyst, compared the drop in spending among Gen Z to a burning rug, emphasizing the harsh economic factors affecting this generation.
- As the ultra-affordable friendslop games gain popularity, they have the potential to reshape the gaming industry, particularly in adapting to the changing needs and priorities of the youngest demographic.
- Online and retail video game purchases among Gen Z declined 13% year-over-year from January to April 2025, highlighting the significant impact of economic pressures on their personal-finance and entertainment budgeting.
