‘Fanflation’ is back and coming to gaming and streaming services

For decades, video games have been Alix Green’s go-to hobby. However, in recent years, green has become more expensive.

Instead of buying blockbusters, the Illinois graduate student opted for cheaper alternatives from smaller studios or turned to board and card games. In some cases, the 31-year-old will watch videos of other people playing popular games on YouTube instead of actually playing the games.

“Prices are going up,” Green said. “It’s hard to keep up.”

For years, U.S. consumers have suffered from “fanflation,” a term that refers to the sudden rise in prices of live experiences such as concerts and sporting events that were canceled during pandemic lockdowns.

The sticker shock that consumers first felt outside their homes is now invading their living rooms. After a series of price hikes by some of the world’s biggest companies. Amazon, apple and Netflixeven home entertainment like streaming movies and video games is putting a strain on the wallets of consumers like Green.

Exclusive data analyzed for CNBC PNC Financial Services Amid mounting price pressures, the average consumer cut back on home entertainment in June compared to a year ago. This trend was most pronounced among Gen Z and Millennial consumers, who each saw their transaction value decrease by about 4%.

“Fanflation will return in 2026,” said Brian LeBlanc, senior economist at PNC.

“We see it clearly in travel, entertainment, concerts, etc.,” LeBlanc said. Now, “we’re starting to see more of that in our leisure activities at home.”

unwelcome news

microsoftXbox and Apple each announced price hikes for their devices in late June, but Apple acknowledged in a statement that the news was “not welcome news.” 1 month ago nintendo announced that it will increase the price of Switch 2 in the US by 11%.

The companies claimed that this was due to a lack of demand for artificial intelligence-driven memory chips, which resulted in higher component prices.

Deborah Weinswig, founder of Coresight Research, said some of the price increases could pass on prices to consumers.

Xbox CEO Asha Sharma said in a recent interview that the company will focus on making lower-cost consoles because games are becoming more unaffordable. Microsoft announced this week that it would lay off thousands of employees at its Xbox division and spin off several game studios.

“We’ve reached a point where it’s hard to imagine that a mass audience can afford to spend thousands of dollars on a console generation,” Sharma said on stage at a Fortune event early last month.

Computers and related devices have become cheaper over time as production becomes more efficient, taking into account inflation and their capacity. But NerdWallet senior economist Elizabeth Renter said this trend is starting to reverse as component prices rise, meaning the disinflation relief for shoppers is nearing an end.

Powering these devices is becoming more expensive, as are air conditioners, which homes are running more and more. Power prices have soared 45% since 2019, according to government data, driven in part by supply shocks from Russia’s invasion of Ukraine in 2022 and war with Iran in 2026.

“Streamflation”

Several major streaming services have also increased subscription prices, a phenomenon known as “streamflation.”

Netflix, Amazon, and spotify It followed a similar move by the company earlier this year, which announced an increase to its platform. disney and warner bros discoveryApple has increased the price of its TV+ service in mid-2025, marking the third price increase in recent years.

Free service from Tubi Fox Co., Ltd. In some cases, their viewership exceeds that of major streamers. Executives expect consumers tired of rising monthly fees to watch ads in exchange for free content.

Fiona Williams said she regularly subscribes to the service and then cancels it so she can control her spending. In some cases, project managers may slack off completely. For example, rather than buying a Peacock membership for the latest season of the popular romance show Love Island, she watches clips of episodes on the social media platform to keep up with the latest developments.

“It’s a balancing act, but I never maintain more than one at a time because it’s just too expensive,” said Williams, 40.

The Akron, Ohio, resident uses some of her downtime to read, but she hasn’t seen a rise in prices compared to other leisure categories.

The Bureau of Labor Statistics reports that since the beginning of 2019, the price of video and video game subscriptions or rentals has increased by 53%, while television services have increased by 27% and music subscriptions have increased by 14%. Meanwhile, prices for entertainment books fell 4%.

pressure on consumers

In 2026, annual inflation spiked in the out-of-home “fanflation” category, such as sporting events and amusement park visits, according to PNC data analysis. The Pittsburgh-based bank said those service categories are putting renewed upward pressure on the Core Personal Consumption Expenditures Price Index, the inflation measure favored by Federal Reserve policymakers.

The median ticket price for this year’s FIFA World Cup, which will be co-hosted with the United States, has exceeded $900, Ticket Data said this week. When asked about fan anger over ticket prices, FIFA President Gianni Infantino told CNBC that attending the games in the United States was a “once-in-a-lifetime opportunity” and that demand was minimal compared to past tournaments.

Economists warn that rising prices for recreational activities, both in and out of the home, could add to the economic pessimism of the average Joe. Consumer sentiment has fallen to record lows in recent months, according to metrics closely monitored by the University of Michigan.

“Playing games and being able to escape from my life for a moment was a great way for me to find some kind of happiness,” said Green, a student from Illinois. “The whole economy is in a bad place right now, but we can’t get distracted from that.”

—CNBC’s Natalie Rice contributed to this report.