Video game sales shift to older, high-income consumers as young adults cut back

[Daniel Sims]

The big picture: The video game industry has long prioritized targeting young adults, but market research firm Circana estimates that their share of spending in the sector has declined sharply in recent months. Older and higher-income consumers are leaving a growing footprint in the industry due to internal and external factors.

Circana recently reported that spending on video games by US consumers between ages 18 and 24 plummeted by nearly 25% between January and April, compared to the same period last year. Meanwhile, spending from older cohorts declined more modestly or not at all, suggesting that recent economic headwinds have specifically impacted young adults.

According to the Wall Street Journal, young college graduates are currently facing an unusually challenging job market, and the Trump administration has restarted student loan payments.

Amid these combined factors, the New York Federal Reserve reports that credit card delinquency rates are at their highest point since before the pandemic, and are highest for 18 to 29-year-olds.

Video game spend among 18 to 24's is down sharply. "Young grads are having a much tougher time finding jobs. Student-loan payments are restarting for millions of borrowers... credit-card delinquency rates have risen to their highest points since before the pandemic..." www.wsj.com/personal-fin...

[image or embed]

- Mat Piscatella (@matpiscatella.bsky.social) July 1, 2025 at 10:25 AM

As a result, young adults spent roughly 12% less on furniture, 14% less on technology, and almost 20% less on accessories. However, video game spending took the the biggest hit, declining nearly 25%.

During the same period, older age groups spent a few percentage points more annually on technology, total general merchandise, and other items, while spending slightly less on furniture and apparel. Consumers over 24 showed almost no change in spending on video games.

Analysts consider the situation unusual because, although young adults tend to make less money, they also have fewer financial obligations and more disposable income. This is why they are a traditional target segment for entertainment, clothing, and other kinds of leisure spending.

According to Circana Checkout data, 36% of video game hardware in the US was sold to households earning $100k+ during Q3 2024. This is up from 29% back in Q1 2020. Purchasing share of video game hardware for households earning $50k per year or less fell from 41% in Q1 2020 to 35% in Q3 2024.

- Mat Piscatella (@matpiscatella.bsky.social) November 12, 2024 at 12:29 PM

However, Circana has observed a long-running trend in which older and higher-income customers represent a growing share of video game spending. Households earning $100,000 a year or more purchased 36% of video game hardware in the US in the third quarter of 2024, up from 29% in the first quarter of 2020.

Meanwhile, the share going to those making $50,000 or less fell from 41% to 35%. The US gaming market also saw declines in all age groups under 44 that year, which senior director Mat Piscatella attributes to rising expenses.

Although the Nintendo Switch 2's launch broke records despite its high price and Mario Kart World's unprecedented $80 price tag, the analyst primarily pins the success on strong supply. As gaming becomes more expensive, younger consumers may prioritize free-to-play games, mobile platforms, and cheap PC games while spending a larger share of income on groceries.

Permalink to story:

Video game sales shift to older, high-income consumers as young adults cut back

 

[scoffer]

Hardly rocket science. When NVidia and AMD insist on gouging hardware-buyers, then what do they expect? Those sky-high rip-off prices for GPUs, made worse by greedy grasping retailers had to have some effect eventually. Let their products rot on the shelves.
It's perhaps time that the younger folks discovered reading......

 

[yRaz]

Ive been going back to older games, I started playing Neverwinter Nights 1 again. You'd be surprised how strong the community is. It's less of a game than it is a platform for creating DnD campaigns you can play online with other people.

 

[AlexIL]

I looked at EVE Online again but their paid tier priced so high I decided not to.

New games demand sky high priced GPUs and accordingly the rest of components.

I discovered books and old games before the push for greed happened. It's funny but everything before 2012 has better story and consistency than today's money grabs.

 

[Neatfeatguy]

Zero reason to upgrade hardware for me. New games starting to become unplayable without $1-2k+ GPUs and all the upscaling software. I'll stick to older games or indie type games that are engaging, capable of ruining well on hardware without upscaling and are fun to play coop.

 

[yRaz]

I looked at EVE Online again but their paid tier priced so high I decided not to.

New games demand sky high priced GPUs and accordingly the rest of components.

I discovered books and old games before the push for greed happened. It's funny but everything before 2012 has better story and consistency than today's money grabs.

For as much as I get out of EvE, I find their paid teir to be well worth the value. You never know when the next big battle will happen, have to call in sick to work and end up in the news and part of Internet history

Zero reason to upgrade hardware for me. New games starting to become unplayable without $1-2k+ GPUs and all the upscaling software. I'll stick to older games or indie type games that are engaging, capable of ruining well on hardware without upscaling and are fun to play coop.

I've started looking at older games that have "dated" graphics and started looking at them as charming and having character. After all, games are about having fun. If looking at the graphics of a game and being entertained by how bad they are then I'll call that a positive experience. Especially, like you said, with the price of GPUS these days. People called Racing the rich mans sport. Gaming is starting to become a rich man only hobby. Sure I could afford a top end gaming machine, but I just don't think the games that require suck a thing are worth playing or paying for. And hardware costs are only going to go up from here. "Let me just pay $2000 for this GPU so I can play the game with MTX in it"

 

[ScottSoapbox]

Analysts consider the situation unusual because, although young adults tend to make less money, they also have fewer financial obligations and more disposable income.

Amazing how a 30% increase in prices of everything due to inflation eats up most people's disposable income.

We went from vast deficit overspending (propped up by the federal reserve) to somewhat-less-vast deficit overspending + tariffs. The buffer many people enjoyed 5 years ago is gone.

 

[Dr Roboto]

As pointed out by others, given the ridiculous cost of GPUs and pretty much everything else, only older higher income people can afford to play in video games in 2025.

I also think that there is not that much exciting out the past year or more. I don't always buy the latest games on release, but I normally have a back log of at least 2 or 3 AAA or top reviewed games that I want to buy. Not this year. Maybe it is just me, but it has been lacking in exciting and original content. Kind of feels like the recent trend in movies from Hollywood and streaming services. Low quality, rehashed trash, but $$$. I tried out the new Battlefield 6 trail/demo, it was okay and not looking forward to $70. However, it got me to buy Battlefield 1 and 5 for a few bucks each. So far, having a lot more fun and my 3070 Ti has not issue running at ultra.

 

[bandit8623]

While true to a point. you dont need 60fps to play games. my first pc I could afford 20 years ago I was barely getting 40fps in games like counterstrike... compared to now it sucked, but then it was fine. if you want to game you can game just dont fall into the fomo. People care too much about what other have and they dont. too much jealousy

you can get a pc for cheap to get over 100fps nowdays. same for valorant.

 

[yRaz]

While true to a point. you dont need 60fps to play games. my first pc I could afford 20 years ago I was barely getting 40fps in games like counterstrike... compared to now it sucked, but then it was fine. if you want to game you can game just dont fall into the fomo. People care too much about what other have and they dont. too much jealousy

you can get a pc for cheap to get over 100fps nowdays. same for valorant.

People forget the times when 60FPS was the upper limit. High refresh monitors and VRR wasn't a thing some people were lucky and could do 75 on a CRT or even overclock them a bit to 90. This world of 120hz being the new 30 blows my mind, the marketing department really has gamers by the anus. They've convinced everyone that if you aren't getting 100+ then you shouldn't be gaming.

 

[AnilD]

Gaming companies might have to start marketing deluxe collector’s editions with ergonomic chairs and lower back support if this trend keeps going.

The image of a 45 year old with a six figure salary buying a $500 console to play two hours of Tetris a week while a broke college kid stares longingly from Steam’s free games page is oddly poetic.

 

[AlexIL]

For as much as I get out of EvE, I find their paid teir to be well worth the value. You never know when the next big battle will happen, have to call in sick to work and end up in the news and part of Internet history

All things considered it ain't. Simple math:
Subscription 20$ a month and a little less if paid yearly
For first three to six months your character is virtually useless so 20x3 at best it's 60 and worst 6x20 its 120$ before you can really do anything worthwhile in game.
Of course you can buy character at Bazaar so it will be anywhere between 100 and 500 USD for character only, depending on skillset and perks.

Lets play in minimum possible:
Subscription 20x12 if paid monthly is 240$ a year. Game mechanics as it is now you will fork out at least another 100$ if not more just to get you started.

So realistically 300 to 500 a year. For pixels.

 

[yRaz]

All things considered it ain't. Simple math:
Subscription 20$ a month and a little less if paid yearly
For first three to six months your character is virtually useless so 20x3 at best it's 60 and worst 6x20 its 120$ before you can really do anything worthwhile in game.
Of course you can buy character at Bazaar so it will be anywhere between 100 and 500 USD for character only, depending on skillset and perks.

Lets play in minimum possible:
Subscription 20x12 if paid monthly is 240$ a year. Game mechanics as it is now you will fork out at least another 100$ if not more just to get you started.

So realistically 300 to 500 a year. For pixels.

I've been playing EvE for 14 years, the idea that you need to invest hundreds of dollars just to get started is false. If you lack patience and don't want to invest in the game, fine, but you need to learn the game mechanics in those 6 months

 

[fadingfool]

People forget the times when 60FPS was the upper limit. High refresh monitors and VRR wasn't a thing some people were lucky and could do 75 on a CRT or even overclock them a bit to 90. This world of 120hz being the new 30 blows my mind, the marketing department really has gamers by the anus. They've convinced everyone that if you aren't getting 100+ then you shouldn't be gaming.

I only have a 75Hz monitor so I up the details on most games until I hit this limit (RX 7800XT). It is a great 1440p IPS 32 inch screen so I have no desire to replace it yet. I've been told if you try a higher refresh rate monitor you can't go back - so - I won't try a higher refresh monitor

 

[yRaz]

I only have a 75Hz monitor so I up the details on most games until I hit this limit (RX 7800XT). It is a great 1440p IPS 32 inch screen so I have no desire to replace it yet. I've been told if you try a higher refresh rate monitor you can't go back - so - I won't try a higher refresh monitor

Max I can see is 120/144, but I'm generally happy with anything over 90. Can't hit 60 in RT games on my 6700XT but I'm thinking of treating my self to a 9070XT for Christmas

 

[AlexIL]

I've been playing EvE for 14 years, the idea that you need to invest hundreds of dollars just to get started is false. If you lack patience and don't want to invest in the game, fine, but you need to learn the game mechanics in those 6 months

Thanks, I left after their gimmicks to milk as much as they can. In WHs you could farm a sub in a day when you already know how. The idea of learning the game for half a year that is 20$x6 months equals 120$ thank you very much. I was doing that when game was subscription only and 10$. Marketing the game as niche and unique while changing exorbitant prices and doing everything to milk people out, not my idea of fun time.

Edit: back then peak active players were at 70+ thousand a weekend. Today it's about 20 and a lot of it just multiboxing.

Anyways I don't have the capacity nor wish to invest into gaming rig as hardware prices beyond any reason and adding subscription prices plus microtransactions, man I rediscovered books and libraries as in 90s. If you're a whale ready to throw thousands just for pixels, that's your choice. I am happy with my choice. IMHO online gaming is dead, the rest is hype and flops. You can't base your business model catering just to whales, at some point the only left within will be just whales. That's what happens with gaming and it is surprising only to CEOs who made these decisions. We the people walked out.