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Turns out the generation most immersed in games is also pulling back on spending more than anyone else. A recent study signals a sharp rethink in how Gen Z values their gaming time and budget.

How Big Is the Drop

According to 2025 data from Circana via PC Gamer Americans aged 18–24 are spending nearly 25% less per week on video games compared to the same period last year That is despite overall retail and online spending from this group already down about 13% but gaming saw the sharpest decline of all For older groups spending barely budged losing less than 5%.

Why Is This Happening

Gen Z is navigating a perfect storm:

• Tough job market for new grads.
• Student loan repayments coming due after pandemic pauses.
• Skyrocketing credit card delinquency among under 30s highest in years.
• AAA games consoles and PC hardware have surged in price with 70 to 80 base editions now common.

Mat Piscatella from Circana captured the mood best

The rug is not just being pulled out from under young people it is being burned while they are still standing on it.

How Gen Z Is Adapting

They have not abandoned gaming they have just shifted gears.

• Rise of affordable friendslop co op games like Peak Repo Lethal Company all usually under 10 dollars great for group play.
• Free to play titles and indie games are serving as budget lifelines.
• Subscription services like Game Pass and PS Plus offer massive content for a flat month fee more value less sticker shock.
  

Despite spending less, Gen Z remains deeply engaged with gaming. As of March 2025, players aged 18-29 still make up 28% of the gaming community – a significant share that continues to stay active and connected.

It Is Not Just US Gen Z Internationally Is Trimming Back Too

Japan’s Gen Z shows similar behavior A 2024-2025 trend shows younger players spending less time and money on games.

• Average yearly spending in 15-24 year olds is only around $70 dropping to $42 for casual players.
• They prefer mobile gaming and are highly aware of the time value trade off weighing how much enjoyment they get for every minute spent gaming.

Putting It All Together

Gen Z is still gaming hard but they are serving it smarter This generation cares less about full price releases and more about affordability social gameplay and value Industry models based on high margin first day sales might soon feel outmoded if Gen Z continues to prioritize access over excess.

Final Take

The fact that Gen Z is pulling back nearly 25% on gaming expenses is a splash of cold water for publishers If they want to keep this generation engaged and coming back they will need to rethink pricing release strategies and content value

Want breakdowns on how this will affect subscription models AAA game pricing or digital platforms Let me know and be sure to subscribe to The Gamers Cut for the breakdowns that matter no fluff just facts.