business
Consumers Cut Home Entertainment Transactions After Price Hikes and Company Cost Cuts
PNC Financial Services data shows average consumers reduced home entertainment spending in June 2026 compared with a year earlier. Gen Z and Millennial consumers each trimmed transactions by about 4 percent. Multiple companies raised prices for devices and subscriptions in recent months.
Jul 13, 11:20 AM·1m read1 source
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PNC Financial Services data shows that average consumers reduced home entertainment transactions in June 2026 compared with June 2025. The pullback was most pronounced among Gen Z and Millennial consumers, who each cut transactions by about 4 percent. CNBC reported that the decline followed price increases announced by several major companies.
Microsoft and Apple raised prices for Xbox and other devices in late June 2026. Nintendo increased the price of its Switch 2 console in the U.S. in May 2026. Microsoft laid off thousands of workers in its Xbox unit and spun off several gaming studios in July 2026.
Xbox CEO Asha Sharma said gaming is becoming unaffordable and that the company will focus on less-costly hardware. Several streaming services raised subscription prices earlier in 2026. Netflix, Amazon and Spotify announced increases, following similar moves by Disney and Warner Bros.
Discovery for HBO Max in late 2025. Apple raised prices for its TV+ service in mid-2025, marking the third increase in three years. Brian LeBlanc, PNC's senior economist, said the data reflect a return of higher prices for leisure activities.
"Funflation is back in 2026," LeBlanc said. "We're seeing that very clearly in things like travel, entertainment, concerts. " Government data cited by CNBC showed electricity prices have risen 45 percent since 2019.
The Bureau of Labor Statistics reported a 53 percent increase in the price of subscribing or renting videos and video games since the start of 2019, a 27 percent rise in TV service prices and a 14 percent increase in music subscription prices over the same period.
