Are you a zoomer? Do you like video games? And does it feel like the economy reeks? Well, if you’ve been avoiding that Nintendo Switch 2 purchase, or if you plan on skipping out on EA Sports College Football 26, you might not be alone. Apparently, spending on the gaming industry is bottoming out among Gen Z, at least according to data from American research group Circana.
Zoomer spending on games dropped by nearly a quarter
In a June 24th report from the Wall Street Journal, Circana found both online and retail purchases among ages 18-to-24 dropped by 13% from January to April compared to the year prior. In particular, Circana found that young zoomers were spending nearly 25% less per week on video games than in 2024. While purchases for accessories, small appliances, technology, and “total general merchandise” had all dropped with young adults, video gaming took the lead in Circana’s data. The drop off was enormous for 18-to-24-year-old gamers, as data on other age groups revealed a minor, single-digit decline well under 5%.
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Reporter Rachel Wolfe concluded that contributing factors to dropped spending included a difficult job market, student loans, and a particularly high credit card delinquency rate among those aged 18 to 29.
“This group is struggling more than older cohorts,” an economist with Wells Fargo told WSJ. “Since younger consumers are not only spending less today but also probably saving less, that could dent their ability to build wealth in the future.”
A dangerous sign for gaming’s future
Mat Piscatella, an executive director and video game industry analyst with Circana, shared some insights in a thread on Bluesky. “Overall, purchasing by 18-24s has plummeted, especially when compared to other age groups,” he wrote. “The rug’s not just being pulled out from under young people, it’s being burned while they’re still standing on it.”
As Wolfe’s report notes, young consumers are expected to spend heavily in the entertainment sector, given college students and recent grads traditionally have low financial responsibilities. But if Gen Z’s young adults can’t spend on gaming, that isn’t a promising sign for the industry’s future. 18-to-24-year-olds that are strapped for cash today may be strapped for cash tomorrow. If so, the wealth gap between zoomers and millennials could simply increase over time. And as some millennials cut back on gaming to fund life responsibilities, like family care or repairing a house, zoomers might not be able to replenish the lost income left behind from the youngest millennial consumers.
Time will tell what happens to the gaming industry. But a zoomer spending cut by nearly 1/4th per week? That’s a clear danger for every video game company, big and small.
