Why Gen Z Is Slamming the Brakes on Game Spending — And What It Means for the Industry

Ever find yourself hesitating over that Nintendo Switch 2 preorder, wondering if your bank account will survive the next bundle drop? You’re not hallucinating.

According to Circana, spending on video games by 18-to-24-year-olds cratered in early 2025. Online and retail purchases among this group fell 13% from January through April, year-over-year—and get this—they’re shelling out nearly 25% less per week on games than they did in 2024. Ouch.

Zoomer Wallets Under Siege

This isn’t just light belt-tightening. It’s a full-on money meltdown. I mean, our generation has always leaned into entertainment—late-night gaming marathons in college dorms, splurging on the latest EA Sports College Football—but the tables have turned. Reporter Rachel Wolfe points to a nasty job market, crushing student loans, and sky-high credit card delinquency in the 18-29 bracket as the main culprits.

• Tough job market
• Mounting student debt
• Credit card delinquencies
• Other living-cost shocks.

Sound familiar? If you’ve stared at your monthly statement and felt that pit in your stomach, you know exactly what’s going on.

Behind the Numbers

Circana’s exec director Mat Piscatella didn’t mince words: “The rug’s not just being pulled out from under young people, it’s being burned while they’re still standing on it.” And, yeah, that image hit me. While other age brackets saw a modest sub-5% decline, zoomers got walloped.

What’s more interesting is that, typically, college students and recent grads have low obligations—no mortgages, fewer dependents—so they’re expected to splurge on entertainment. But with this cutback, you’ve got to wonder: are we redefining what “fun budget” even means? Is streaming subscriptions and microtransactions taking precedence over full‐price releases?

A Dangerous Sign for Gaming’s Future

An economist at Wells Fargo warned that if younger consumers spend more and save less, their ability to build wealth down the road could seriously suffer. And here’s the kicker: as millennials age into bigger life-stage spending—think family care, home repairs—zoomers won’t have that cushion. If we’re strapped now, replenishing that lost spending power could be a long way off.

Truthfully, I’d be torn. On one hand, it’s responsible to pause on big ticket purchases when you’re juggling debt and rent. On the other, I’d miss the hype of midnight launches, the shared buzz in Discord channels.

Could this be a blip or a lasting shift? Only time will tell. But for game studios—big AAA publishers and indie devs alike—a near-25% weekly spending drop among zoomers is a flashing red warning sign.

What’s next? Maybe more flexible pricing, subscription bundles, or even new payment models that don’t feel like a bank heist. Or perhaps we’ll see groundbreaking free-to-play titles that actually respect player time and wallets.

Let’s kick this conversation into gear. Are you cutting back on new releases? Swapping full-price games for free titles?

Drop your thoughts below, and follow us on Facebook and Instagram for the latest vGamerz takes. And before you go, check how this teen’s Roblox game breaks records.

Sources:

• www.vice.com/en/article/gen-z-is-cutting-back-on-video-game-purchases-like-really-cutting-back/
• www.ign.com/articles/younger-americans-have-spent-25-less-on-video-games-this-year-than-last
• www.gamesindustry.biz/video-games-spending-by-young-americans-is-dropping-sharply-report-suggests