The Download – August 2026
Steam hits record revenues in first half of 2026
Welcome back to the Download, the monthly newsletter from Moore Kingston Smith’s video game team.
Steam hits record revenues in first half of 2026
Data firm Alinea Analytics has confirmed that one player in the video game industry continues to grow: Steam.
Its research suggests that Steam generated $11.1bn in the first half of 2026. That’s an increase of 14.5% year-on-year and a record half-year total for the business.
Four developments have driven Steam’s strong performance.
First, the platform continues to grow its player base in China. It’s hard to report precise numbers because players in the country often access the global store via virtual private networks. But analyst firms report that there are approximately 13 million to 15 million Steam users in China: a number that rivals the US and is growing each year.
Second, the industry is getting much better at making money from games launched before 2026. Alinea estimates that 79% of revenue generated on Steam came from the ‘back catalogue’ of games released prior to the start of the year. Publishers with a strong portfolio of evergreen releases are succeeding in the current market, in a similar way to successful players in film, TV, music and publishing.
Third, the Triple A games that dominate the top of the market are selling games effectively to players at higher prices. Forza Horizon 6, the best-selling racing game that’s generated $197.6m on the platform, has sold well at $70. This bodes well for Grand Theft Auto VI, which will sell at $80 this November.
Finally, the market is benefiting from a surge in sales of viral games that come to market quickly and turn trending on social media to great success. Meccha Chameleon, a game where you play hide and seek with other people by painting your character to blend with the background, generated $71.3m in H1 2026 off a price tag of $6.
Steam is not immune to market challenges. The platform is currently the subject of class action lawsuits in the UK and US, which claim that its near monopoly of the PC market has allowed it to engage in anti-competitive actions that have cost consumers.
But as the fortunes of the console industry wane, PC continues to grow. Steam is well set to capitalise upon that change in the sector for years to come.
Games industry news in brief
Ireland extends Games Tax Credit to post-launch development
The European Commission has approved an extension to Ireland’s Digital Games Tax Credit. The relief, which offers developers up to 32% off development costs up to a total of €25m, previously did not apply to post-launch content. Following an amendment from the Irish government and Commission approval, it now does – benefitting Irish games businesses in the process.
UK Games Fund backs record 29 developers with grants
The UK Games Fund has announced its largest ever cohort of developers supported by its prototype funding. Games Industry Biz reports that 29 companies have received grants of up to £100,000 to get their games off the ground. The funding is part of a £30m package for the UK industry agreed as part of a government-backed Games Growth Package
Xbox layoffs raise questions over future games strategy
And finally, Xbox announced 3,200 layoffs and the divestment of five studios at the beginning of July. BBC News explores its effect on developers working in the business, what it says about the company’s games strategy and what comes next for the company.
Keep up with Moore Kingston Smith
Our team is heading to Gamescom later this month, where we’ll be teaming up with UK Games Angels to host an exclusive breakfast event. We’ll also be meeting with games industry leaders and businesses as part of UKIE’s trade delegation.
If you’d like to meet our team to discuss how our services can support your game business, contact us.
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