Video game spending among young Americans has declined sharply in response to rising prices and mounting economic pressures. A 2024 report from Circana—cited by multiple industry sources—highlights a 15–20% drop in spending among gamers aged 18–34. This downturn signals a potential turning point for the gaming industry, prompting questions about future pricing, subscription models, and game development strategies.
Here’s the TL;DR…
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Young Americans cut video game spending by 15–20% in 2024, with 18–24-year-olds dropping nearly 25%, per Circana.
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Game prices rose from $59.99 to $69.99 on average in 2024, according to NPD Group.
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Subscriptions to Xbox Game Pass and PlayStation Plus rose by 10%, showing a shift to value-based models.
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Economic pressures, including inflation and student loan repayments, impacted discretionary spending.
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Major titles like Black Myth: Wukong and Dragon Ball: Sparking! Zero sold well, but overall market growth slowed from 8% to 2%.
What’s Behind the Spending Decline?
Younger Gamers Are Spending Less
Circana’s 2024 U.S. gaming trends report reveals that gamers aged 18–34—especially those 18–24—dramatically pulled back spending. The drop aligns with economic burdens like inflation (3.2% in 2024) and resumed student loan payments, totaling $1.6 trillion nationally. These factors have sharply reduced spending on premium titles, particularly among college-age consumers.
Games Are More Expensive Than Ever
NPD Group data shows the standard price of new games jumped to $69.99 in 2024, up from $59.99 in 2023. The increase reflects the rising cost of AAA game development, with titles like Black Myth: Wukong and Final Fantasy VII Rebirth commanding high production budgets. While these games saw success, the higher price point is pushing budget-conscious players toward alternatives.
Subscriptions Pick Up the Slack
Statista reports a 10% increase in subscriptions to Xbox Game Pass and PlayStation Plus, as players seek more value. Services offering broad game libraries for $10–$15 per month have become appealing substitutes for purchasing $70 titles. Microsoft’s day-one inclusion of Call of Duty: Black Ops 6 on Game Pass in October 2024 further accelerated this trend.
Economic Stressors Tighten Budgets
Inflation and student debt are key contributors. According to the Federal Reserve Bank of New York, student debt reached $1.6 trillion in 2024. Coupled with rising living costs, many young adults are funneling spending into essentials. The Entertainment Software Association’s 2024 report shows a notable dip in full-priced game purchases among 18–24-year-olds.
What Sold Anyway?
High-Profile Releases Still Performed
Despite the downturn, blockbuster titles like Black Myth: Wukong (August 20, 2024) and Dragon Ball: Sparking! Zero (October 11, 2024) maintained strong sales, according to GameSpot. However, NPD Group’s annual review revealed that total U.S. video game market growth slowed to just 2% in 2024—down from 8% in 2023—suggesting that big wins are now the exception, not the rule.
Industry Implications
A Shift to Mid-Tier Games or Free-to-Play?
With price sensitivity climbing, publishers may explore lower-cost development or shift toward free-to-play and service-based models. Nintendo’s consistent $299.99 price point for the Switch—and speculation about a cost-conscious Switch 2—puts it in a strong position heading into 2025.
The Role of Subscription Models
If Game Pass and PS Plus continue to grow, they could redefine how games are sold and funded. Developers may prioritize games designed for long-term engagement over cinematic single-player blockbusters.
Final Thoughts
The spending pullback among young gamers in 2024, sparked by higher prices and economic strain, is forcing the industry to reassess its approach. With the July 10 Nintendo Direct and the rumored Switch 2 reveal on the horizon, the next phase of the console cycle may hinge on affordability and flexibility.
News compiled and edited by Derek Gibbs and Steven Bubbles on July 3, 2025. Follow us on ClownfishTV.com for more gaming, pop culture and tech news, and consider subscribing for only $5 per month to get access to exclusive podcasts and other content.
Sources:
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Circana. (2024). 2024 U.S. Video Game Market Trends Report (via WSJ).
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U.S. Bureau of Labor Statistics. (2024). Consumer Price Index Annual Summary.
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NPD Group. (2024). Annual Gaming Industry Report.
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Statista. (2024). Subscription Gaming Market Growth.
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The Verge. (2024, October). Game Pass Adds Call of Duty: Black Ops 6.
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Federal Reserve Bank of New York. (2024). Student Loan Debt Overview.
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Entertainment Software Association. (2024). Essential Facts Report.
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GameSpot. (2024). Launch Coverage of Black Myth: Wukong and Sparking! Zero.
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Eurogamer. (2024). Switch 2 Pricing and Strategy Rumors.
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Nintendo. (2024). Hardware Pricing Overview.
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