Gen Z Video Game Spending Drops 25% in 2025, Study Finds

Gen z

A recent study has found that people aged 18–24 are spending significantly less on video games compared to older age groups.

According to Circana’s research, reported by the Wall Street Journal, Gen Z’s weekly spending on games has dropped by nearly 25% compared to the same period in 2024. Between January and April alone, both online and retail game purchases fell by 13% year-over-year.

Matt Piscatella, Circana’s executive director and video game industry analyst, shared a breakdown of the data on social media. His graph showed that while older generations saw a modest decline of under 5% in gaming expenses, the 18–24 demographic experienced a much sharper drop, creating a clear gap in spending habits.

Industry experts point to several contributing factors, including economic challenges, tougher job markets for younger people, the return of student loan payments, and rising credit-card delinquencies hitting their highest levels since before the pandemic.

Still, it’s not all doom and gloom. Spending hasn’t stopped entirely, and earlier surveys suggest some young players are still dropping significant amounts on gacha games, sometimes to the point of struggling with essentials like rent and bills. This suggests priorities may be shifting rather than gaming disappearing from their budgets altogether.