Gen Z's Gaming Spending Plummets: A Warning Sign for the Industry?

2025-07-02
Gen Z's Gaming Spending Plummets: A Warning Sign for the Industry?

New data reveals a significant drop in video game spending among 18-24 year-olds in the US. April saw a nearly 25% decrease compared to last year, part of a broader trend of reduced spending across various categories. This downturn, attributed to economic uncertainty, a tighter job market, and resuming student loan payments, contrasts with stable spending among older demographics. This presents a serious challenge for the games industry already grappling with layoffs and slowing revenue growth, highlighting the vulnerability of traditional game models compared to the continued success of free-to-play giants like Roblox.