Consoles too expensive for young people: PlayStation and Xbox depend on families with higher purchasing power

A report by Circana warns about the low percentage of buyers among players aged 18 to 24 years.

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The price of consoles and related services continues to rise, and with it, some concerning data emerges for the major companies in the sector. According to recent statistics shared by analyst Mat Piscatella from Circana (formerly NPD Group), young people between 18 and 24 years old are barely buying consoles like Xbox Series, PlayStation 5, or Nintendo Switch 2.

The report states that this age group only accounted for 3% of hardware purchases in the United States over the last 12 months, compared to 10% in 2022. In contrast, households with incomes over $100,000 per year now account for 43% of purchases, up from 36% in previous years.

A challenge for the future of Xbox and PlayStation

The problem is significant. If young people don’t access these platforms now, it’s unlikely they will when they’re 20 or 30 years old, according to Piscatella, citing GamesIndustry.biz. In other words, the generational shift in the user base could be compromised if prices continue to drive away younger buyers.

This not only affects console sales but also the consumption of services like Xbox Game Pass, PlayStation Plus, or Nintendo Switch Online. The risk is that the industry’s growth will become increasingly tied to a player profile with high purchasing power, rather than attracting new generations.

Circana’s analysis becomes a warning sign for the future strategy of major brands. If Xbox and PlayStation want to remain relevant to young people, they may need to rethink their pricing policies or find new formulas to facilitate access to their hardware and services.