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[havoc00]

Perhaps responding to economic uncertainty and narrowing job prospects, young people in the United States are significantly cutting back on spending on video games compared to this time last year. While 18- to 24-year-olds aren't buying as much across a range of different categories, losses are concentrated in games.

New data published by market research firm Circana and reported by The Wall Street Journal suggests that young adults spent nearly 25% less on video game products in a four-week span in April than in the same timeframe last year. Other categories also dramatic drops: Accessories (down 18%), technology (down 14%), and furniture (down 12%). All categories combined, the 18-24 age group spent around 13% less than last year.

This decrease is not reflected among older cohorts, whose spending has been mostly stable year-over-year. The WSJ report suggests that the economic context could be driving young adults to pull back; a tighter labor market, increased economic uncertainty, and student-loan payments restarting all may be contributing to an environment hostile to the spending habits of 18- to 24-year-olds in particular.

This is potentially a warning indicator for the games industry, which has already been struggling under multiple rounds of layoffs and a reduction in revenue growth (despite often record-high profits). If they have an industry-wide impact, these spending cuts may disproportionately affect certain types of games; free-to-play behemoths like Roblox have been more popular than ever, even while conventional game developers have struggled.

Young Americans Are Spending A Whole Lot Less On Video Games This Year

New data suggests that 18- to 24-year-olds are cutting back on many different categories, with losses most concentrated in games.

www.gamespot.com

 

[Topher]

Probably because of overall inflation makes video games less of a priority for younger people

 

[I collect VHS tapes]

when I was that age I was prioritizing beer so I get it

 

[Dacvak]

Probably because of overall inflation makes video games less of a priority for younger people

Sure, I'm gonna get all of my "younger people takes" from someone who's 114 years old.

luv u <3

 

[Northeastmonk]

maybe they just don't want to drop all their funds on microtransactions.

When you don't have a lot in college or school, paying $70-$90 for 1 game is a hard pill to swallow for some people. When I was 15-17, games were $50. No F2P to play. Now a days you just need to have a PC and download a client. It's not all that exciting unless you've got some sorta thing where you're gaming with friends all the time.

 

[Last Hearth]

Don't get my hopes up that gaming will become the niche hobby it used to be again.

 

[bender]

Probably because of overall inflation makes video games less of a priority for younger people

Did that stop you and your friends from buying hoop-and-stick and cup-and-ball during the great depression?

 

[R6Rider]

Did that stop you and your friends from buying hoop-and-stick and cup-and-balls during the great depression?

 

[Topher]

Did that stop you and your friends from buying hoop-and-stick and cup-and-ball during the great depression?

 

[DavidGzz]

Way less games worth $70 in the last year.

 

[Gamer_By_Proxy]

I'm an old dude making up the difference. Just spent $1.50 on crime bosses rockay city and $4 on crash bandicoot.

 

[Danny Dudekisser]

Why are we singling out video games here, and in April of all months? Trump had his whole "Liberation Day" vomit on April 2nd, and everyone pulled back on spending across the board due to the sheer uncertainty.

 

[zokie]

mobile title has more fanservice these days and some will wait for steam sales

 

[onQ123]

Did that stop you and your friends from buying hoop-and-stick and cup-and-ball during the great depression?

Dammit Bender that man has a family for God sakes

 

[onQ123]

Maybe they were waiting for Switch 2

 

[Pasta la Vista]

I see people cutting back in a big way the past couple years on entertainment related purchases in general.

I work for USPS and our parcel count is nearly half of what it was. But of course, we had the covid bubble and tons of people basically getting free money for like 2 years. That well has dried up and the job market in general is not good.

I also have a small ebay store and items I've listed are taking longer to sell.

 

[ZehDon]

Hmmm, must be nearly time for another price increase then.

 

[Toons]

The economy being an unforgiving hellscape where you're perpetually chasing the next paycheck that will mostly go to bills will do that

 

[Hawk The Slayer]

Because they are waiting for the much better games next year like GTA VI, Resident Evil 9, Half Life 3, Tides of A, and the year after for Witcher 4, Elder Scrolls VI, etc etc.

 

[yurinka]

Some may think it's time to hugely increase the prices in USA with some big random tariffs to European, Japanese and Chinese games plus to PC and console hardware and accesories.

 

[El Muerto]

I really wanted to buy the Hank Hill Fortnite skin pack but that shit costs $20. I dont play the game often so i couldnt justify spending that much. Maybe they're getting sick of these high prices too, especially on games they grew up with.

 

[kikkis]

I feel like they are craving for something new for their generation. Like Cod was for boomers and Fortnite for zoomers.

 

[PlayStaytion]

They want to get rich and as a mentor, I appreciate that.

 

[YCoCg]

Most still gaming at that age these days just hop on Fortnite or COD so they can show off their new celebrity or famous characters Collab skins.

 

[Pop]

Most games aren't worth $70 plus

And way too many decently good f2p games

 

[No BBC=Anger]

Remember all those articles a number of years ago about millennials killing Harley Davidson, golf club memberships, napkins and fabric softener?

This week young people are killing the video games industry.

The bastards.

 

[Branded]

I wish I was a young American as I'm spending far too much right now.

 

[//DEVIL//]

Forget about young people, I am an adult and I am spending less on video games .

I am never paying 90$ or 80$ US for a new game. Doesn't matter what it is. That's just absurd amount of money to spend on one game. It doesn't matter who is making it either.

The industry is becoming nothing but greed. Back then, we used to get tekken tag 2 with all characters on a single game. Now they charge you 30$ for 5 characters that take them 1 year to make. Seasons pass, skins, whatever, 90% of the games are designed with greed in mind to take more money from you to have a complete game.

Not to mention some of these games, even if they are complete, they are not worth the asking price.

These days, if it's a game I really want, I'll wait till it's 50$ MAX . Otherwise, I don't mind waiting years and getting it later, complete and dirt cheap, too.

Here is hoping these publishers start to wake up before they bankrupt and do nothing but blame gamers for not buying their shitty game lol.

 

[Parazels]

I'm not surprised, considering the average biological age of NeoGAF users.

 

[RetroGamingUK]

Dev costs really went up this gen

People want ridiculously high detailed assets and these are expensive to produce

I do, however, think we've reached a limit with this now, in many games they can't get better.

Next gen the push towards photorealism will be delivered by ray/path tracing, this won't increase dev costs.

 

[Ozzie666]

Partially true, but I suspect they are remaining loyal to whatever game they are invested in, Fornite, Roblox, NBA 2K, or whatever game has currency. Younger audience buys much less new games, too much invested with their friends and items to bail. Future gaming is screwed with the social engineering that every game requires mortgage payments and virtual currency to keep up with.

 

[Dr.Morris79]

Way less games worth $70 in the last year.

This is the real answer.

If there is a game that's good, any 18 to 24 will find the money..

You can jazz up any reason you want, but if a game is shit, it's shit. If you'd of shown me half these games back then when I was 18 or 24, I'd of, how strange? Not bought them either..

I grew up in shit times too, always on the bones of my arse, but I always managed to somehow grab that £40 PS1 game if it was good

 

[digimaster7]

not american, but I'm also buying newer game less and less because most of them are unpolished lifeless slop with equally terrible writing.

instead I'm buying older game from 9-10 years ago even more and more. Games like MH World is more polished and an absolute cinema of a game compared to the 99% crap released today. currently working on my master rank on Iceborn

 

[Lux77]

80$+ games also contribute to this

 

[Wildebeest]

Raise the prices two or three more times this year. That will solve the problem.

 

[Ellery]

Once again we find ourselves in the news field of decreasing sales which not only one individual industry is being concerned by but many.
And the solution will once again be freshly printed new money injected into the system through channels of increasing the wealth and total assets of the rich by fueling the western consumerism frenzy which the entire modern system is built on since 1971. I bet if I were to go to a remote controlled vehicle message boards they have news about decreasing sales of the Thunderhammer 4000X 0.5L mini engine and if I were to go to a fashion board they would complain about declining sales from in the industry too.

Also it would help if they stop screwing up when they are given the chance of making a new big AAA game with a 300 million dollar budget.

 

[Unknown Soldier]

This article is dumb, Nintendo has sold 5 million Switch 2 in a month. Maybe stop making wokeshit and your sales won't be shit, Western game devs

 

[Parazels]

I don't understand why people are so eager to buy new games on day one.
I normally buy and play past gen games. They are cheaper and run at a solid 60 fps on current hardware. As you say, it's like killing two birds with one stone.

 

[Goalus]

Game Pass exists, so this makes sense.

 

[Mozza]

80$+ games also contribute to this

Na... Everything has gone up over the last four years or so. It's pretty easy to spend £30 to £50 on a take away meal. Games are way better value and can be sold on.

 

[IFireflyl]

Why are we singling out video games here, and in April of all months? Trump had his whole "Liberation Day" vomit on April 2nd, and everyone pulled back on spending across the board due to the sheer uncertainty.

Did you just read the headline? In the OP:

New data published by market research firm Circana and reported by The Wall Street Journal suggests that young adults spent nearly 25% less on video game products in a four-week span in April than in the same timeframe last year. Other categories also dramatic drops: Accessories (down 18%), technology (down 14%), and furniture (down 12%). All categories combined, the 18-24 age group spent around 13% less than last year.

This article is dumb, Nintendo has sold 5 million Switch 2 in a month. Maybe stop making wokeshit and your sales won't be shit, Western game devs

I'm all for calling out garbage when I see it, but you used this article/thread as a springboard to complain about something that has nothing to do with the topic at hand. Spending in general decreased with young Americans. I don't see how you can blame apparel, appliance, and technology sales on wokeism.

 

[winjer]

Time for CEOs to increase prices again

 

[GymWolf]

A lot of young americans are saving money for the sidney sweeney bathwater soap coming out soon.

 

[seething left]

Not American, not young, but I haven't purchased a single recent game since 2022. They all (with minor exceptions) look like soulless, uninspired woke garbage.
Instead I started playing old games that have been in my backlog for a long time, like Sleeping Dogs, Lost Judgment, Rush 2049 (decompiled). And my goodness, are those games fun to play. In the recent state, gaming industry can burn the fuck down, and I wouldn't shed a tear.

 

[Punished Miku]

If only the youth heard the gospel of Gamepass. So many innocents condemned to a life without light.

 

[Hudo]

Sleeping Dogs

Based Pork Bun Enjoyer.

 

[Rush2112]

They're sepnding less because their dads takes care of the spending

 

[StereoVsn]

Probably because of overall inflation makes video games less of a priority for younger people

Yeah, prices are going up, job prospects are going down, grad school potential is getting hammered by administration huge cuts to Education and you have a very bad mix for younger folks.

And considering plethora of cheap older games you can get whether for PC or Consoles, including emulation, used and just older (still great) titles, plus F2P games; industry revenue decreases aren't surprising.

Yet the industry is pushing now $80 / €90 pricing for games.

 

[Punished Miku]

Yeah, prices are going up, job prospects are going down, grad school potential is getting hammered by administration huge cuts to Education and you have a very bad mix for younger folks.

And considering plethora of cheap older games you can get whether for PC or Consoles, including emulation, used and just older (still great) titles, plus F2P games; industry revenue decreases aren't surprising.

Yet the industry is pushing now $80 / €90 pricing for games.

There are cheaper games too, and that's usually the stuff that blows up with young people. Among Us, Fortnite, Minecraft. $70-80 stuff is really just for 40 year olds at this point. This is why some people are predicting that consoles could decline over the next 10 years. $70-80 is just for whale hunting millennials.

 

[Madflavor]

In the War for Attention, video games are losing badly to social media platforms. I forget the exact data, but if you compare the collected minutes spent on gaming to minutes spent on social media each year, it's not even a real comparison. There's a massive gulf between the two.

Add to that, games are getting more and more expensive. If the average young person has the choice between free entertainment on Youtube, TikTok, Twitter, etc, or an expensive hobby, I think it's obvious where most of them are going to turn their attention to.