US Gaming Console Purchases Concentrated Among Wealthier Households
Recent market analysis has revealed a significant shift in the demographic profile of video game console buyers across the United States. According to fresh data from analytics firm Circana, households with annual incomes exceeding $100,000 (approximately £72,600) now represent the majority of gaming hardware purchasers, marking a substantial change from just a few years ago.
Dramatic Shift in Buyer Demographics
Mat Piscatella, senior director at Circana, shared compelling statistics via Bluesky that illustrate this evolving landscape. During the first quarter of 2022, 40% of gaming hardware buyers came from households earning $100,000 or more. By the final quarter of 2025, this figure had surged to 53%, indicating that wealthier consumers now dominate console purchases.
Conversely, the opposite trend has emerged among lower-income households. Those earning less than $50,000 annually saw their representation among gaming hardware buyers decline from 31% to just 19% over the same period. This divergence highlights growing affordability challenges within the gaming market.
Rising Costs and Industry Response
The gaming industry has experienced consistent price increases across multiple fronts in recent years. Major console manufacturers have implemented successive price hikes, with the PlayStation 5 receiving its second increase, Xbox Series X and Xbox Game Pass becoming more expensive, and Nintendo charging upwards of £75 for select Switch 2 titles.
Piscatella describes these demographic shifts as "wild but not surprising" given current economic conditions. He anticipates further price increases alongside more "premium targeted accessories" and creative packaging of games into higher-priced special editions.
Broader Economic Context
This trend occurs against a backdrop of broader economic pressures affecting consumer spending. With inflation impacting essential costs from basic amenities to housing—where 90% of UK earners cannot afford to purchase homes—discretionary spending has become increasingly constrained for many households.
Consumers have grown more reliant on essential technology such as mobile phones requiring regular replacement and stable internet connections. Combined with stagnant wages, even traditionally affordable entertainment options like gaming face budget competition from more pressing financial obligations.
Industry Adaptation and Future Direction
The data helps explain several industry developments, including the growing popularity of free-to-play games like Fortnite and the increasing focus on PC gaming, where entry-level systems can now cost less than many consoles. Piscatella theorises that for long-term growth, the industry will likely emphasise more free-to-play experiences while gradually implementing price increases and FOMO-driven microtransactions.
Major publishers including Ubisoft and Sony continue pursuing free-to-play models despite mixed success, while new releases like Highguard suggest even independent developers view live service games as a sustainable future direction. This strategic pivot reflects the industry's response to changing consumer economics and purchasing patterns.
The overall sales figures underscore these challenges. Despite the Christmas shopping period, PlayStation 5 discounts, and the relatively new Switch 2, only 1.6 million console units sold in November 2025—the lowest November total recorded since at least 1995. This suggests that while high-income households continue purchasing, broader market contraction reflects affordability barriers for many potential buyers.
