Facing persistent financial pressures, young adults are adapting their entertainment habits, especially in the gaming sector. Reports indicate a decline in discretionary spending for consumers aged 18 to 24, signaling a shift in priorities as costs mount. Many Gen Z gamers are reconsidering major purchases and exploring more budget-friendly gaming options. With gaming once serving as a primary leisure activity for this demographic, industry trends are now reflecting wider economic challenges. Brands and publishers must quickly recognize the implications, as this behavior could affect game development, marketing strategies, and future sales projections.
Recent analyses identified by Circana highlight a marked drop in video game purchases among young adults, outpacing overall declines seen in other age groups. Data from 2025 shows that expenditure among 18-to-24-year-olds shrank by 13% compared to previous years, while video game spending nearly halved in some reports. Earlier news coverage had noted gradual declines, but not at the current pace or magnitude. Notably, the shift toward cost-effective independent games and online free-to-play titles has accelerated, with “friendslop” games rising in popularity. This pattern underscores a deeper, long-term shift in consumer habits rather than a temporary downturn.
Why Are Young Gamers Spending Less?
Ongoing economic hardships—including stagnant employment opportunities, resuming student loan repayments, and heightened credit card delinquencies—are limiting Gen Z’s discretionary budgets. Mat Piscatella from Circana remarked,
“Video game spend among 18 to 24’s is down sharply.”
The combination of these factors is driving many to avoid premium-priced AAA games, which now frequently retail at $70 or higher.
How Are Game Preferences Shifting?
Gen Z gamers continue to form a large segment of the gaming community but are shifting toward more affordable entertainment. Titles like Peak, Repo, and Lethal Company represent the growing trend of “friendslop” games, usually priced at $10 or less, designed for cooperative social play. Many of these games have minimal hardware requirements, making them accessible to a wider group of players.
What Does This Mean for the Gaming Industry?
As big-budget releases and new hardware such as the anticipated Switch 2 push industry price points higher, accessibility concerns mount. Developers and publishers may need to reconsider pricing structures and how they approach content offerings to retain the young adult market. Piscatella added,
“The rug’s not just being pulled out from under young people, it’s being burned while they’re still standing on it.”
The economic strain on Gen Z is not only reflected in purchasing power but in broader changes to entertainment preferences. The rising appeal of less expensive, cooperative video game experiences demonstrates how the gaming community adapts in response to shifting financial realities. Brands that cater to these new priorities may find more success in retaining this influential segment of the market. Publishers and hardware manufacturers should consider the risks of pricing out younger players, as evidence suggests a willingness to shift allegiance to more accessible alternatives. While fiscal pressures remain, the capacity for innovation in the gaming space offers opportunities for companies who can balance affordability with engaging experiences.
