Research reveals that members of Generation Z are spending significantly less on video games compared to their older gaming counterparts.
In the ever-evolving world of video games, a significant change is underway, with Gen Z (aged 18 to 24) experiencing a notable drop in video game purchases. According to recent data, there has been a 25% decline in spending on video games among this demographic in 2025 [1][2][4].
This decrease is part of a larger trend, a perfect storm of harsh economic factors that have hit Gen Z hard. Faced with difficulty finding jobs, the restart of student loan payments, and rising credit card delinquency rates, this generation is grappling with tougher economic pressures than older cohorts [2].
Several key factors contribute to this decline. Economic hardship, with rising living costs amid ongoing inflation and a cost of living crisis, makes discretionary spending on entertainment less feasible [2]. The increase in game prices, with AAA game development costs, tariffs, and supply chain issues pushing prices higher (e.g., base editions around £70/$70+), doesn't align with Gen Z's growing frugality and preference for saving over splurging [2].
Moreover, Gen Z has less disposable income compared to other age groups, and their weekly spending on video games in 2025 is nearly 25% less than in 2024, while older generations show a much smaller decline [1].
This financial strain has led to a marked decline in video game spending, signalling a major shift in the industry’s youngest adult consumer base [1][3][5].
Interestingly, the rise of affordable, co-op focused "friendslop" games such as Peak, Repo, and Lethal Company is a notable trend in 2025. These games, designed for socializing and goofing around, often requiring minimal investment in hardware, have become popular among Gen Z [3][5]. Typically priced around $10 or less, they offer an affordable alternative to more expensive games.
Mat Piscatella, a video game industry analyst, shared another chart on BlueSky comparing the drop in spending among Gen Z to spending changes in older generations. The data shows that spending among Gen Z dropped significantly more than older generations, with a difference of dramatic proportions [2].
Stevie Bonifield, a freelance tech journalist specializing in mobile tech, gaming gear, and accessories, has also noted this trend. Outside of writing, Stevie has interests in indie games, tabletop role-playing games (TTRPGs), and building custom keyboards [6].
The drop in spending on video games is particularly surprising given that they historically cater towards young people. However, with the current economic climate and the rise of affordable gaming options, it's clear that the gaming industry must adapt to meet the changing needs of its youngest consumers [1].
References:
- CNN Business
- The Guardian
- Polygon
- Kotaku
- GameSpot
- Stevie Bonifield's Portfolio
- The decline in spending on video games, a historic mainstay for young people, is striking, given a 25% drop in game purchases among Gen Z in 2025.
- Current economic pressures, such as job scarcity, student loan payments, and credit card delinquency rates, have contributed to the significant decrease in video game spending among Gen Z.
- The rise of affordable, co-op focused games like Peak, Repo, and Lethal Company is a trend in 2025, catering to Gen Z's interest in saving money and offering more affordable alternatives to pricier games.
- Mat Piscatella, a video game industry analyst, observed that Gen Z's spending drop is more dramatic compared to older generations, as depicted in his charts from BlueSky.
- With changing economic conditions, the gaming industry must adapt to meet the evolving needs of its youngest consumer base, as the landscape of food-and-drink, technology, entertainment, lifestyle, and finance also shift around them.
