Young Americans between the ages of 18 and 24 are spending less on video games fromNintendoand other companies on a year-by-year basis, according to a new report. Despite the growth that the gaming industry has seen following the launch of theNintendo Switch 2, other factors, including the job market, credit card debt, and the state of student loan payments, have been major forces behind these changes.
The information comes amid a volatile period in the video game industry. On July 2, the gaming industry was shaken by a large round of layoffs from tech giant Microsoft. Over 9,000 jobs were reportedly cut across multiple Xbox game development subsidiaries like Blizzard, Rare, and Halo Studios. Due to Microsoft’s latest layoffs, several projects in development, includingPerfect DarkandEverwild, were canceled. Ongoingtitles likeWarcraft Rumblewere also affected, as the mobile Blizzard game is going into maintenance mode with no further content updates aside from bug fixes.
Despite theglobal success of the Switch 2 during its first month, many young buyers are cutting their gaming budgets to focus on other matters. According to aCircana report posted by The Wall Street Journal(andcorroborated by GamesIndustry.biz), young American spenders aged 18 to 24 spent 25% less on video games in April 2025 compared to the same period in 2024. By comparison, other age groups have only cut video game spending by about two percent in the same year-on-year window. Throughout the first four months of 2025, spending on video games by young Americans is down 13% compared to 2024, though other age groups have slightly increased their gaming budgets at a slower pace. The factors behind these changes in young Americans' budgets included, but were not limited to, student loan repayments, credit card debt, and the current state of the US job market.
Young Americans Spent 25% Less on Games in April 2025
Other products, such as small appliances, furniture, and apparel, also saw cuts in the budgets of young Americans. The report came just weeks afterXbox announced price increases for its consoles, accessories, and upcoming titles, includingThe Outer Worlds 2. Though the open-world RPG from Obsidian Entertainment will start at $80, fans looking to save money can playThe Outer Worlds 2via Xbox Game Pass once the game launches on October 29.
Withthe US government’s tariffs on imported goodsfrom various nations looming overhead, customers of all demographics are seeing price increases across the board on different goods. It remains to be seen how spending trends will shape up through the rest of 2025.
Nintendo Switch 2
The successor to 2017’s Nintendo Switch continues down the same path as its predecessor, providing a hybrid experience that supports both home and handheld gaming. Launching on Jun 28, 2025, with games like Mario Kart World, the basic Nintendo Switch 2 bundle comes with the console, Joy-Con 2, straps for the controller, a dock, an AC adapter, an HDMI cable, and a Joy-Con 2 grip.
