A recent report by The Wall Street Journal found that younger Americans are cutting back on video game spending by 25% compared to last year. The decline is most pronounced among those aged 18-24, with a decrease of 13% in overall spending across categories such as accessories, technology, and furniture. However, the biggest drop was seen in video games themselves.
The WSJ attributes this trend to economic challenges faced by young adults, including graduates struggling to find employment and rising credit card delinquency rates among 18- to 29-year-olds. The report also notes that student-loan payments are restarting for millions of borrowers.
Despite the decline in spending, gamers continue to engage with free-to-play games on their existing devices. According to Mat Piscatella, a representative from market research company Circana, this suggests that people are still playing video games, even if they’re not shelling out as much cash.
This trend comes amidst significant job losses within the gaming industry. Microsoft has announced plans to lay off around 9,100 employees, including staff from its gaming business. Other companies have also faced significant cuts in recent years.
The data suggests that gamers are being affected by economic uncertainty, but they’re not abandoning the hobby entirely. As Xbox boss Phil Spencer noted, his company is seeing more players and games than ever before – a stark contrast to the current financial climate.
Source: https://www.ign.com/articles/younger-americans-have-spent-25-less-on-video-games-this-year-than-last