"Cutting Back on Living Expenses, but Not on This"... Game Spending Soars in Japan Despite High Prices

Game Spending Continues to Rise for Eight Consecutive Months Despite Overall Consumption Slump

Consumers Open Wallets for Random Draws and Limited-Time In-Game Items

In Japan, where household consumption has been shrinking due to factors such as rising prices, spending related to games—including game consoles and in-game items—has shown a notable increase.

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According to the Nihon Keizai Shimbun (Nikkei) on September 16, data from the Ministry of Internal Affairs and Communications' household survey indicated that real expenditures per household on "game software and related products," including in-game payments and accessories by game companies, have increased for eight consecutive months year-over-year as of July.

The household survey is a national monthly statistical investigation into the income and expenditures of 9,000 households.

Spending on the "game software and related products" category for households with two or more people in July was 2.4 times higher compared to the same month last year. On an annual basis, spending on this item last year reached 2,306 yen (approximately 20,292 won) per household, doubling from a decade earlier.

The upward trend in game-related spending stands in stark contrast to the overall decline in consumption.

Real consumer expenditure fell year-over-year for eight consecutive months through July. The average household expenditure in July was 301,245 yen (about 2,650,805 won), a 3.6% decrease from July of last year. Even for essential items such as food, households have tightened their budgets, with household spending on "food" in July down 1.3% from the same period last year.

The Nikkei analyzed that as high prices persist, selective consumption has emerged in which people cut back on daily spending but continue to spend money on their hobbies.

Hideki Yasuda, an analyst at Toyo Securities, explained, "Game items are often available through random draws or for limited periods, making them highly scarce," adding, "There is a psychological motivation to acquire these items even if it means saving money on food." He also pointed out, "The widespread adoption of cashless payments (convenient, cash-free transactions) is another reason people feel less resistance to spending on games."

This content was produced with the assistance of AI translation services.