PWN Games

Steam achieved record-breaking financial performance in the first half of 2026, generating an estimated $11.1 billion in gross revenue. This figure represents a 14.5% year-over-year increase compared to the first half of 2025 and an 8% rise over the second half of 2025. The platform’s growth trajectory is significant, with H1 2026 revenue nearly matching the total annual revenue recorded in 2021 and exceeding the entirety of 2020. These findings are based on proprietary estimations from Alinea Analytics, which utilizes its own game sales tracking platform to monitor market activity.

Several factors are driving this expansion, including a notable influx of players from Asian markets, particularly China, and a strategic shift by major publishers to return to the platform after previously utilizing proprietary launchers. Additionally, the industry is seeing higher price points for new releases and more sophisticated management of back-catalog titles. Data indicates that the revenue share derived from new releases has declined from 29% in H1 2024 to 21% in H1 2026, while older titles now account for 79% of total revenue. This shift suggests that publishers are successfully leveraging discounts, bundles, and timed sales to maintain the long-term viability of their existing libraries.

Top-performing titles in the first half of 2026 include Forza Horizon 6, Resident Evil Requiem, and Crimson Desert, all of which generated significant revenue shortly after launch. While early access titles like Slay the Spire 2 and Subnautica 2 have achieved high unit sales, their revenue impact varies based on price points and conversion rates. Overall, the data underscores Steam’s continued dominance as a primary distribution hub, with total annual revenue having grown from approximately $5.5 billion in 2017 to an estimated $20 billion by the end of 2025.

The gaming industry experienced a period of stabilization and strategic realignment in the second quarter of 2026, characterized by a resurgence in public market activity and a significant surge in private investment value. While the total value of mergers and acquisitions declined compared to the previous quarter, the volume of deals reached 54, the highest count since 2022. Public market activity also hit a two-year high, with 25 deals closing for a combined $1.7 billion, bolstered by notable IPOs such as Liftoff.

Private investment reached a two-year peak of $3.1 billion, largely driven by a $1 billion round for AppsFlyer and substantial capital inflows into artificial intelligence technology. Despite this high-level investment, early-stage funding for pre-seed and seed rounds fell to a multi-year low of $0.1 billion, while Series A rounds reached a five-year high of $0.8 billion. This indicates a shift in investor focus toward established tech infrastructure rather than direct game content development.

The mobile gaming sector faced headwinds, with in-app purchase revenue falling to $19.4 billion—the lowest level since the third quarter of 2023—and total installs hitting a five-year low of 11.3 billion. Conversely, the PC and console markets showed resilience; Steam revenue continued to grow at double-digit rates, and the console market saw a 3% year-over-year increase, significantly aided by the launch of the Nintendo Switch 2. Despite solid revenue growth across many firms, gaming stocks generally underperformed compared to broader indices like the Nasdaq, reflecting a trend of valuation compression across the sector. Data for this analysis was compiled by InvestGame, with additional insights provided by Sensor Tower and Alinea Analytics.

The 2026 analysis of web gaming perceptions, commissioned by the web platform Poki, examines the current state of the browser-based gaming sector through the perspectives of both players and developers. The research, conducted by Atomik Research, surveyed 400 developers and 2,000 active web gamers across the United States and the United Kingdom. The findings highlight a significant growth trajectory for the sector, with Poki reporting an increase in monthly active users from 10 million in 2020 to over 100 million by 2026.

Player engagement data reveals that web gaming is a frequent habit, with 86% of respondents playing at least a few times per week and 37% playing multiple times daily. Sessions are typically brief, lasting 11 to 20 minutes, during which players often sample multiple titles. Accessibility remains the primary driver for this audience, as users prioritize the lack of download requirements, ease of access, and the free-to-play nature of the medium. Notably, the majority of web gamers also own traditional gaming hardware, such as consoles or PCs, suggesting that web gaming serves as a complementary activity rather than a substitute for high-end gaming.

Developer sentiment is largely positive, with 74% of surveyed creators finding it relatively easy to publish titles on the web. A significant majority of developers intend to expand their presence in the space, with 53% planning to port mobile games to the web and 51% aiming to release native HTML5 titles within the next year. While technical complexity remains the primary barrier to entry, developers increasingly view the web as a viable channel for reaching new audiences and achieving creative freedom, despite concerns regarding revenue potential and audience quality.

The 2026 state of the direct-to-consumer (D2C) market in mobile gaming reflects a sector in transition, characterized by widespread experimentation but limited operational maturity. While some industry projections estimate the D2C market at $17 billion, these figures are subject to significant debate regarding the methodology used to define incremental versus existing revenue. The primary objectives for studios adopting D2C strategies include driving revenue growth, fostering direct player relationships, and reducing reliance on traditional platform storefronts.

Methodologically, the findings are based on an online survey conducted by the GDC Festival of Gaming between January 19 and February 25, 2026. The sample included 1,206 total respondents, with a refined focus on 281 decision-makers in manager-level positions or higher who possess direct experience with D2C initiatives. Of this subset, 130 respondents are specifically involved in the mobile gaming industry.

Key findings indicate that the majority of companies are still in the early stages of D2C adoption, with 42% exploring the channel and 16% currently testing it. Only 25% of studios report that their D2C operations are scaling or mature. Furthermore, 52% of organizations have yet to adapt their monetization strategies to accommodate direct payments. Operational challenges remain a significant barrier, with 50% of respondents citing player awareness as a primary hurdle, followed by player acquisition and a lack of internal expertise. Despite these obstacles, 38% of companies plan to increase their dedicated D2C headcount in 2026, while 60% intend to maintain current staffing levels. Social media, influencer partnerships, and gaming events are identified as the most effective channels for driving traffic to direct payment platforms.

The report demonstrates that mobile gaming remains a dominant force in Europe’s digital economy, with 2025 revenues reaching €7.53 billion and a projected €8 billion by 2028 (CAGR –2.2 %). Nordicity’s economic analysis, covering over 1,000 studios across 32 countries and drawing on Sensor Tower data, assigns a €5.89 billion Gross Value Added (GVA) contribution to the broader economy and 63,340 jobs in 2025. For EU member states alone, GVA is €5.2 billion with 50,330 jobs, rising to €6.17 billion by 2028 (+4.8 %). The methodology bases GVA on studios’ in‑country expenditures—wages, user acquisition spend and other costs—rather than operating profit, a conservative approach acknowledged by the authors.

Globally, mobile games account for 55 % of the €167.26 billion games market in 2025, with Europe’s share reflecting a similar proportion. Over 300 million Europeans play on mobile devices (61 % of active players), and 97 % engage with free‑to‑play titles, totaling more than 320 million users. The average player age is 31, with 75 % adults. Mobile publishers allocate 41 % of annual budgets to player acquisition and retention, underscoring intense competition amid falling download volumes.

Revenue distribution highlights Finland (€1.4 billion), the UK (€895 million), Ireland (€868 million), Spain (€722 million) and Sweden (€630 million) as top markets. Smaller economies such as Cyprus, Serbia and Ukraine generate disproportionate revenue relative to GDP size.

Social impact findings from a 1,500‑person survey in the UK, Spain and Sweden show that daily mobile gamers report higher confidence with technical tools. The Sea Hero Quest title, developed in partnership with Alzheimer’s Research UK, collected data from 4.3 million players, contributing to dementia research.

The study draws on Nordicity data, Sensor Tower metrics, Newzoo and ESA figures, and a UK/Spain/Sweden youth survey conducted between January 1 and December 31 2025. The commissioned report aims to underscore the economic and social value of European mobile studios amid forthcoming regulatory scrutiny.

The bi‑weekly “Games and Numbers” update tracks milestone achievements for PC, console, and mobile titles released between June 17 and June 30, 2026. It aggregates sales figures, download counts, and revenue milestones from a mix of press releases, social media announcements, and third‑party analytics. The report highlights several high‑profile successes: “Black Myth: Wukong” surpasses 30 million copies worldwide, with China contributing nearly half; “Meccha Chameleon” reaches 10 million copies in just 16 days, peaking at 209.7 k concurrent users and entering Steam’s top‑100 most popular titles; “Kingdom Come: Deliverance II” exceeds 6 million copies in 16 months; “Warhammer 40,000: Rogue Trader” hits 2 million copies sold; and “Paralives” delivers over 1 million copies in a month, far exceeding its own projections. Other notable entries include “SAND: Raiders of Sophie,” which sold 200 k copies in a week and earned $2 million in five days, and “KIBORG,” which surpassed 100 k copies within a year. Mobile performance is underscored by “Rush Royale,” which has generated over $500 million in revenue from 105 million downloads. Platform‑wide data notes that Epic Games has paid creators over $1 billion through Unreal Editor for Fortnite, with creator‑built islands accounting for 47 % of playtime in May 2026. The summary draws on publicly available sales data, Steam analytics, and publisher statements to provide a concise snapshot of commercial momentum across the industry during the reporting period.

The May 2026 U.S. gaming market shows modest overall growth, with consumer spending reaching $4.2 billion—a 3 % year‑over‑year increase driven by the launch of “007 First Light” and the Nintendo Switch 2. Cumulative spending for the first five months rose 4 % to $23 billion, while content‑related purchases grew 1 % in May to $3.8 billion, totaling $20.4 billion year‑to‑date (3 % above 2025). Console content led the rise, up 25 % YoY; PC content and subscription services also expanded by 15 % and 11 %, respectively.

Hardware sales, however, faced pressure. Total hardware spending climbed 38 % YoY to $249 million, yet the PlayStation 5 experienced a 43 % decline in dollar sales and a 58 % drop in units after recent price hikes. The Nintendo Switch 2 offset this trend, becoming the top‑selling device in May and year‑to‑date with 5.9 million units sold, the second fastest launch in U.S. history after the Game Boy Advance. Xbox Series S|X spending increased 7 % YoY, though unit sales fell 12 %. Average hardware price rose to $502 (14 % YoY), with PlayStation 5 and Xbox Series prices up 33 % and 22 %, respectively. Accessories spending grew 8 % YoY to $168 million, driven by a 95 % surge in racing wheel sales following “Forza Horizon 6” launch.

Game sales data, sourced from Circana’s projected estimates, highlight “007 First Light” as May’s best‑selling title across platforms and “Forza Horizon 6” as the second best. Resident Evil: Requiem maintained first place in five‑month sales, while mobile revenue leaders remained consistent with titles such as “Monopoly GO!” and “Candy Crush Saga.” The report draws on Circana’s consumer‑purchase tracking, supplemented by Sensor Tower mobile revenue data.

The report demonstrates that the global games market expanded to $201.6 billion in 2025, a 9.1 % year‑over‑year increase that surpassed Newzoo’s initial forecast. Growth was driven by a 12 % rise in the PC segment, reaching $43.6 billion—the highest growth rate recorded by Newzoo—alongside a 10.7 % jump in mobile revenue to $113.3 billion, despite declining download volumes and rising user‑acquisition costs. The console market grew modestly to $44.7 billion (+2.8 %), buoyed by the launch of Nintendo Switch 2 and stronger spending on new releases and subscription services, which grew 10.2 % YoY.

Revenue composition shifted: PC game sales rose 25 %, while console sales increased 8.1 %. Microtransaction revenue on PC grew 9.1 % (notably from Counter‑Strike 2 and Roblox), whereas console microtransactions fell 4.6 % due to underperformance of Fortnite and Call of Duty. Subscription services across PlayStation Plus and Xbox Game Pass contributed a 10.2 % increase.

Regionally, every market grew; Asia‑Pacific led with a 9.9 % rise to $95 billion, while the Middle East and Africa grew 15 % to $7.7 billion, becoming the fastest‑growing region. North America’s growth slowed to 5.7 % ($54 billion). Europe expanded 10.7 % to $36.3 billion, driven by strong PC and mobile performance.

Newzoo projects a 5.1 % CAGR through 2028, reaching $234.4 billion by year‑end 2028. Forecasts account for rising hardware costs, the anticipated impact of GTA VI on console revenue (+5.1 % to $46.9 billion in 2026), and a continued, albeit slower, mobile growth trajectory driven by Chinese publishers. The report bases its estimates on Newzoo’s proprietary data collection, including sales and subscription metrics across physical, digital, and D2C channels.

The report examines mobile app monetization across the App Store and Google Play from January 2025 to March 2026, drawing on $900 million in verified IAP purchases, $800 million in subscription revenue, and $7.2 billion in advertising income. In Q1 2026 subscription revenue doubled year‑over‑year, rising 105 %, while IAP and advertising grew 29 % and 14 % respectively, confirming subscription as the fastest‑growing stream over the past fifteen months. Games that blend all three models saw subscription share climb from 4 % to 7 %, at the expense of advertising, which fell from 63 % to 56 %. In non‑gaming apps, subscriptions dominate but represent a smaller share of total revenue compared to games.

Key performance benchmarks reveal that casino titles lead in D90 IAP ARPU ($2.43 globally, $2.66 in NA/Europe) and D90 IAP ARPPU ($11.40), while midcore games follow closely. Non‑gaming apps achieve comparable D90 IAP ARPU ($2.32 globally, $2.79 in NA/Europe) and sit between casino and midcore games on ARPPU ($10.85). Advertising monetization is strongest in casual games (D90 IAA ARPU $0.55) and weaker in hypercasual segments.

Revenue accumulation patterns show advertising dominates early days, delivering 57 % of a game’s D60 revenue on Day 1 and 89 % by Day 7, whereas IAP and subscription lag behind. Paid installs drive the majority of gaming revenue (59 % overall, 79 % in hypercasual), whereas non‑gaming apps rely more on organic traffic, especially outside North America.

Conversion metrics indicate that non‑gaming apps convert 9.84 % of installs to first‑time purchasers and 4.64 % to repeat purchasers within 30 days, outperforming games across all categories. Casino games convert 4.95 % to first‑time payers, with a repeat‑payer ratio of 1.65×; midcore and casual games show slightly higher ratios. Regional analysis highlights North America’s superior conversion rates (11.14 % first‑purchase) compared to LATAM (6.51 %).

Rewarded user acquisition has shifted from a niche experiment to a mainstream channel, with 93 % of surveyed developers already investing in it and 61 % planning to raise budgets. The survey, conducted by Atomik Research between December 2025 and January 2026, sampled 912 developers across ten tier‑1 markets, all of whom were familiar with rewarded UA. The data reveal that 76 % of studios use rewarded acquisition as part of their marketing mix, and 43 % allocate 11‑24 % of total UA spend to the channel; an additional 22 % devote 25‑50 %, while roughly the same proportion spend only 5‑10 %. Most studios (74 %) work with four or more rewarded channels, and a minimum daily spend of $3,000 is identified as necessary for efficient operation.

Timing of adoption varies: 46 % launch rewarded UA within the first three months, 30 % between three and twelve months, and only 7 % wait a year or more. A minority (17 %) introduce the channel at soft launch, indicating early‑stage engagement is a priority. Common trigger events include level completion (45 %), daily streaks (42 %), in‑app purchases (41 %), loyalty progression (37 %), sessions (32 %) and re‑engagement (28 %). Almedia recommends a multi‑tiered reward structure that balances short‑term engagement with long‑term retention, citing a case study where extending rewards from 50 to 90 days improved ROAS for a mobile title.

Key concerns among developers include churn once rewards expire, data volatility, fraud risk, limited scalability and lack of transparency. The findings underscore rewarded UA’s growing importance in global mobile acquisition strategies, especially within tier‑1 economies, and highlight the need for robust budgeting and reward design to sustain long‑term player value.

The bi‑weekly bulletin delivers a snapshot of recent commercial and engagement milestones across PC, console, mobile, transmedia, platform sales, and industry events for the period June 3–16 2026. It highlights several high‑profile releases that achieved rapid sales growth, such as Pearl Abyss’s Crimson Desert surpassing six million copies in under three months and IO Interactive’s 007 First Light hitting three million sales within two weeks. Independent titles also feature prominently, with Meccha Chameleon and Gamble With Your Friends each exceeding two million copies shortly after launch, while INDIKA reached one million players two years post‑release following a Game Pass addition. The report notes early sales momentum for Mina the Hollower and wishlist activity for Capcom’s Resident Evil Veronica, which attracted over one million Steam wishlists in a week after its Summer Game Fest announcement. Transmedia activity is represented by the Super Mario Galaxy film’s $1 billion global gross. Platform sales data show a sharp 87% drop in Nintendo Switch 2 units sold in Japan after a price hike. Event metrics report record viewership for the Summer Game Fest livestreams at 62 million, a 23% increase year‑over‑year, and a modest 6% attendance rise at Nordic Game 2026. The bulletin aggregates data from press releases, social media announcements, and third‑party analytics to provide a concise overview of market performance during the two‑week window.