A recent report reveals that Gen Z gamers spending less on video games could be one of the most surprising trends of 2025. Young players aged 18 to 24 are facing intense financial challenges, and even buying games has become too costly for many. According to Circana’s June research, total gaming expenses in this group dropped by 13% from January to April 2025 compared to the previous year. Game purchases themselves took the hardest hit, with a nearly 25% decline.
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The Numbers Behind the Decline
Mat Piscatella from Circana shared a chart on BlueSky showing how Gen Z gamers spending less on video games compares to older generations. While older generations saw spending fall by less than 5%, Gen Z experienced a sharp drop. Given that younger players are usually gaming’s primary audience, this decline has shocked many in the industry.
Economic Pressures on Gen Z
This spending drop is the result of a perfect storm: a tough job market, crushing student debt, rising living costs, and ongoing price hikes in the gaming industry. As Piscatella put it on BlueSky:
“Not only is the rug being pulled out from under young people, but they’re setting it on fire while they’re still standing on it.”
Rising Game Prices Making It Worse
The price hikes in gaming are likely to worsen the problem. Many young players already struggle to justify spending 70–70–70–80 on AAA titles. This issue extends to hardware as well — consoles and PC components have all become significantly more expensive, making big gaming purchases even harder.
Gaming Habits Are Changing, Not Disappearing
This doesn’t mean Gen Z has stopped gaming. As of March 2025, 28% of all gamers are between 18 and 29 years old. Gen Z still represents a major part of the player base, but they allocate less money to games than their predecessors. Now, most of their budgets go to free-to-play titles, affordable indie games, or waiting for deep discounts before buying.
The Rise of Cheap Multiplayer “Friendslop” Games
The popularity of budget-friendly multiplayer games—nicknamed “friendslop”—like Peak, Repo, and Lethal Company reflects this shift. These games are usually priced at $10 or less, designed for hanging out with friends without expensive outings, and often don’t require high-end PCs to run well.
Conclusion
The fact that Gen Z gamers spending less on video games reflects not a loss of interest, but an industry adapting to younger players’ financial reality. If prices continue to climb, publishers may need to rethink their strategies to appeal to an audience that plays as much as ever but simply can’t afford premium titles at full price. Affordable, social, and low-hardware-demand games could dominate the coming years.
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