According to a June survey by Circana (formerly the NPD Group), older age groups are more willing to spend money.

Young people are living so frugally that even video games are too expensive for them. Circana’s study found that spending among 18- to 24-year-olds decreased by 13% between January and April 2025 compared to the previous year. Game purchases declined sharply—nearly 25%—as shown in a chart shared by Circana analyst Mat Piscatella on BlueSky. For context, Piscatella shared another chart comparing the decline in Gen Z spending with changes among older generations. The difference is dramatic: while spending by older generations fell by less than 5%, Gen Z’s spending has plunged.

This decline is part of a larger trend resulting from a combination of adverse economic factors hitting Gen Z simultaneously (a tough job market, student loans, and rising prices). As Piscatella noted on BlueSky, not only is the rug being pulled out from under young people, it’s being burned while they’re still standing on it. Price increases across the games industry will likely make matters worse. If young adults already struggle to justify buying games, $70–$80 AAA titles won’t help. The same applies to consoles and PC components, which keep getting more expensive.

This doesn’t mean young people no longer play games (they’re a prime target audience). In March, 28% of gamers were between 18 and 29. Gen Z still makes up a significant share of players, but they spend less—leaning toward free-to-play, cheaper indies, or waiting for discounts. The rise of “friendslop” games—imperfect but fun with friends (e.g., Peak, Repo, Lethal Company)—may be a sign of the times. These are affordable (often $10 or less) and let people socialize and have fun together without going out or spending much.

Most friendslop games don’t require a powerful PC, further lowering the barrier to entry.

Source: PCGamer, Bsky #1, Bsky #2, Bsky #3