The mobile gaming market experienced a 2% decline in in-app purchase revenue.
Mobile decline. Mobile IAP revenue declined 2% and downloads dropped 11.9% in H1 2026.
China's market reached approximately $27.9 billion. Growth was driven by increased revenue per user rather than player base expansion.
This is on track to reach a record by the end of the year. The forecast increased by 788 from the previous month.
Market dynamics reveal a clear consolidation of power among advertising platforms. Paid acquisition remains the dominant strategy in this landscape.
Last War: Survival and Whiteout Survival both experienced 16% revenue declines.
US Casino lost $648 million, Korean RPG lost $297 million, and Japanese RPG lost $229 million.
Strategy games were the only major category to see significant download growth. The broader global market for downloads remained flat or in decline.
The United States market struggles with a 2% year-to-date decline.
The global gaming industry is currently navigating a period of significant structural realignment, characterized by a contraction in traditional console and PC sectors alongside shifting regional growth patterns. During the first half of 2026, the mobile gaming market experienced a 2% decline in in-app purchase revenue and an 11.9% drop in downloads. While the puzzle genre emerged as a primary driver of revenue gains, mid-core and RPG segments faced notable downturns. This volatility is compounded by broader labor instability, with the industry on track to reach a record 14,666 job losses by the end of the year.
Market dynamics reveal a clear consolidation of power among advertising platforms, as AppLovin and AdMob now control nearly 65% of the mobile game ad revenue market. Paid acquisition remains the dominant strategy, though the rise of hypercasual titles and aggressive ad spending by newcomers indicates a highly competitive landscape. While the United States market struggles with a 2% year-to-date decline and a 29% drop in hardware sales due to rising costs and lower unit volume, other regions are thriving. India’s gaming sector is on a strong growth trajectory toward a $1.77 billion valuation by 2030, and China’s domestic market has demonstrated resilience with a 12.17% year-over-year increase.
PC and console sectors are currently facing a paradox of record-high release volumes paired with declining revenue and unit sales. Despite this, niche segments such as browser-based gaming remain stable, particularly within Asian markets. The industry’s overall performance remains bifurcated, with legacy hardware and mid-core mobile titles struggling to maintain momentum while specific high-performing mobile applications and emerging regional markets provide necessary growth. These trends collectively signal a transition toward a more fragmented global ecosystem where success is increasingly dependent on regional adaptation and efficient user acquisition strategies.