Gen Z Is Cutting Back On Video Game Purchases. Like, Really Cutting Back
Young zoomers just can't afford video games anymore. According to the Wall Street Journal, Gen Z is spending far less on gaming.
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Mat Piscatella (@matpiscatella.bsky.social)
Video game spend among 18 to 24's is down sharply. "Young grads are having a much tougher time finding jobs. Student-loan payments are restarting for millions of borrowers... credit-card delinquency rates have risen to their highest points since before the pandemic..."...
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In a June 24th report from the Wall Street Journal, Circana found both online and retail purchases among ages 18-to-24 dropped by 13% from January to April compared to the year prior. In particular, Circana found that young zoomers were spending nearly 25% less per week on video games than in 2024. While purchases for accessories, small appliances, technology, and "total general merchandise" had all dropped with young adults, video gaming took the lead in Circana's data. The drop off was enormous for 18-to-24-year-old gamers, as data on other age groups revealed a minor, single-digit decline well under 5%.
As Wolfe's report notes, young consumers are expected to spend heavily in the entertainment sector, given college students and recent grads traditionally have low financial responsibilities. But if Gen Z's young adults can't spend on gaming, that isn't a promising sign for the industry's future. 18-to-24-year-olds who are strapped for cash today may be strapped for cash tomorrow. If so, the wealth gap between zoomers and millennials could simply increase over time. And as some millennials cut back on gaming to fund life responsibilities, like family care or repairing a house, zoomers might not be able to replenish the lost income left behind from the youngest millennial consumers.
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