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63% of Gen Z Would Rather Play Video Games Than Watch a Movie
(gamerblurb.com)
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The value proposition is just heavily skewed towards video games. Some games cost less than a single visit to the cinema and provide heaps more entertainment. Sure, it's different entertainment and the social aspect of going to the cinema is a factor too, but I'm not much into cinemas myself, so I know where my money goes.
Add into it that a game can offer much of the same as a movie and given that it's an interactive experience, you're not just cheering on the hero, you are the hero.
And the social experience was risky before, but with smartphones being so prevalent, it has skewed the chances heavily towards a negative experience.