Why Gen Z is Cutting Back on Video Game Purchases in 2025

It wasn’t long ago that Gen Z gamers in the UK were queuing for console drops and dropping hundreds on deluxe editions.

But now, that enthusiasm is starting to stall.

With the cost of living spiralling and wages failing to keep up, many young people are pressing pause on their usual spending habits.

Video games, once a go-to escape, are now being pushed aside in favour of financial survival.

Recent data has confirmed the shift.

According to Circana, spending on video games by 18-to-24-year-olds dropped by 13% between January and April 2025, compared to the same period in 2024. Weekly spending alone is down almost 25%.

That’s not just a blip. It’s a sharp turn in what was once one of the most reliable consumer markets.

The change is especially noticeable among British South Asians. A generation raised on EA FC, Fortnite and mobile gaming is finding itself priced out.

And with culture, family expectations and financial pressures colliding, gaming is starting to feel less like a necessity and more like a luxury.

Economic Reality Hitting Harder

For Gen Z people from British South Asian communities, cutting back on games isn’t just about skipping the next big release; it’s about navigating a far more difficult financial landscape.

Inflation, stagnant wages and sky-high rents are hitting 18-to-25-year-olds hard.

And when you factor in the added weight of student loans and community expectations around saving, the strain deepens.

An economist from Wells Fargo summed it up in The Wall Street Journal:

“This group is struggling more than older cohorts.

“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.”

That sentiment rings true for British South Asians trying to get by in cities like London, Birmingham, or Leicester.

In South Asian households, there’s often a cultural push toward responsibility and financial planning.

For some, especially those living at home, gaming may be seen as an indulgence rather than a justified expense.

That shift is having a clear impact.

Data shows that while other age groups saw minor reductions in gaming spend, Gen Z experienced a dramatic cut.

Mat Piscatella, video game industry analyst at Circana, explained:

“Overall, purchasing by 18-24s has plummeted, especially when compared to other age groups.”

No Longer a Safe Spend

Traditionally, young people have been seen as the gaming industry’s core market. They have time, interest and fewer major financial responsibilities.

But that assumption no longer holds. Piscatella didn’t mince words:

“The rug’s not just being pulled out from under young people, it’s being burned while they’re still standing on it.”

Gaming has typically been seen as a shared activity between siblings or cousins in British South Asian homes.

But now, game purchases are increasingly being postponed or skipped altogether.

For many, the days of buying every EA FC release or pre-ordering the next Grand Theft Auto are over.

Instead, there’s more emphasis on second-hand titles, free-to-play mobile games, or relying on gifts for big-ticket items.

And even when there’s still interest, the cost of maintaining a gaming habit has become harder to justify.

The price of a standard PlayStation 5 game hovers around £70. Add in DLCs, season passes and microtransactions, and the costs quickly spiral.

It’s a tough sell when you’re juggling work, student loans, or helping out at home financially.

How Culture & Cost Shape British South Asian Gaming Habits

British South Asian Gen Zers are navigating a unique crossroads.

Many still see gaming as a vital part of youth culture and identity, but they’re doing it on their own terms.

With family budgets tighter than ever, gaming has taken a back seat for many households.

In some cases, it’s a cultural matter too. Academic success and future planning are prioritised, and spending £500 on a console might raise more eyebrows than cheers.

That’s not to say South Asians aren’t gaming.

Mobile gaming continues to be a massive draw, offering entertainment without the price tag.

Games like EA FC Mobile and Call of Duty Mobile are thriving. They’re free to play, social, and fit easily into daily routines.

Social gaming is also adapting.

British South Asian streamers and content creators are gaining traction on platforms like Twitch and YouTube.

But even here, financial limitations show.

Fewer young people are investing in high-spec PCs or the latest capture cards.

Instead, there’s more creativity with limited resources – streaming from phones, using older tech, or collaborating with peers to share gear.

This resourcefulness has become a defining trait of South Asian Gen Z gamers.

But it also points to an underlying truth: many are being forced to scale back not because they’ve lost interest, but because they’ve run out of economic slack.

Danger for Gaming’s Future

Gaming companies have long relied on youth spending to fuel their profits.

But with Gen Z cutting back, there are signs of deeper trouble ahead.

A 25% drop in weekly spend isn’t just an isolated trend; it’s a warning.

If today’s 18 to 25-year-olds don’t build a habit of buying games, studios may face a shortfall in their future customer base.

And it’s not just indie developers who are concerned.

Tech giants like Microsoft have made major job cuts across their gaming divisions in 2025. That’s despite record engagement figures.

As Piscatella explains, spending patterns are shifting dramatically, and companies may be forced to change their models to keep up.

For British South Asian Gen Z, the risk is more personal.

If the industry starts prioritising subscription-based models or high-priced bundles, it could leave out those already struggling.

It could also mean fewer culturally relevant stories, characters or games that reflect their experiences.

Gaming has always promised escapism, connection and creativity.

But if the price of entry continues to rise, many young British South Asians may find themselves pushed further to the margins of an industry they once helped power.

Gen Z’s reduced video game spending isn’t just a passing trend; it’s a reflection of deeper economic and cultural shifts.

For British South Asian youth, gaming remains a beloved part of life, but rising costs and financial pressures have made it harder to sustain.

With expert warnings ringing loud and spending data backing them up, the industry must take notice.

Whether it’s by lowering costs, embracing more inclusive storytelling, or investing in mobile-first models, gaming firms will need to adapt or risk alienating their most passionate young fans.

For now, Gen Z is still playing, but they’re doing so cautiously.