U.S. consumers are increasingly finding that entertainment at home is no longer the cheaper option it once was. After years of so-called “funflation” affecting concerts, sports and other live events, recent price increases from major technology and media companies have begun to squeeze spending on streaming, gaming and other leisure activities inside the home.
According to the report, Microsoft, Amazon, Apple, Netflix and Spotify have all raised prices over the past year. The result has been visible in consumer behavior: data analyzed for CNBC by PNC Financial Services showed that home entertainment transactions fell in June compared with the same month a year earlier, with the biggest pullback among Gen Z and Millennial consumers, each down about 4%.
Gaming and streaming face pressure
Some consumers are responding by cutting back or switching to cheaper alternatives. One Illinois graduate student said rising game prices have pushed her toward smaller independent titles, board games and even videos of others playing online instead of buying major releases herself. PNC’s senior economist said the trend suggests “funflation” is returning in 2026, not only in travel and live events but increasingly in home leisure as well.
The report also points to higher costs for hardware and electricity as additional pressure. Microsoft’s Xbox and Apple announced device price increases in late June, while Nintendo raised the U.S. price of its Switch 2 by 11% earlier in the year. Companies have blamed more expensive components, including a memory chip crunch tied to demand from artificial intelligence. At the same time, electricity prices have climbed 45% since 2019, adding to the cost of powering consoles, streaming devices and other home entertainment.
Source: cnbc.com
