The video game industry, despite facing numerous challenges including closures and cancellations, continues to generate substantial revenue, with a significant portion flowing into Valve's coffers through Steam. According to Alinea Analytics' Rhys Elliott, Steam is poised to achieve its most lucrative year ever, having already amassed $11 billion in gross revenue in the first six months of 2026. This figure not only surpasses the entirety of 2020 (a year marked by global lockdowns and increased gaming activity) but also nearly matches 2021's totals.
| Metric | Value |
|---|---|
| Steam's 2026 gross revenue (first 6 months) | $11 billion |
| Comparison to 2020 total revenue | Surpassed |
| Comparison to 2021 total revenue | Nearly matched |
The reasons behind this success are multifaceted. New players, surprise hits, and a dense autumn release schedule contribute to the platform's prosperity. But a notable factor stirring discussion is the impact of high-priced new releases. Titles such as Resident Evil Requiem, Forza Horizon 6, and Crimson Desert each generated nearly $200 million in Steam sales alone, distinguishing themselves with a $70 price tag (equivalent to $100 in some regions). Elliott suggests that the normalization of higher price points across platforms is a leading contributor to Steam's windfall.
Steam’s $70 Problem: Who’s Paying It?
While not the sole reason for Steam's success, the trend towards higher pricing for major releases is unmistakable. Interestingly, new releases account for less than a fifth of total sales, indicating the platform's revenue is diversified. The success of smaller, more affordable titles like Meccha Chameleon alongside expensive blockbusters highlights Steam's broad appeal.
- New releases account for less than a fifth of total sales
- Success of smaller, more affordable titles like Meccha Chameleon
- Expensive blockbusters like Resident Evil Requiem, Forza Horizon 6, and Crimson Desert
Elliott's analysis also underscores the significance of Asian markets, especially China, in embracing Steam. This contrasts with the strategy of some major studios, which after attempting to compete with their own clients (e.g., Ubisoft's Uplay), have opted to integrate with Steam instead.
Steam’s $1 Billion Back Catalogue Secret
A important insight from Elliott's report is the substantial contribution of Steam's back catalogue to its revenue. Despite record-breaking numbers, new releases constitute a smaller percentage of sales than ever, down 6% from the previous year. This phenomenon, where games achieve significant sales years after launch, parallels the film industry's experience with home video sales transforming initial box office underperformers into long-term successes.
This long-tail approach to game sales suggests a potential shift towards more patient, open-minded publishing strategies. But the industry's current short-term focus might hinder the full exploitation of this trend, benefiting platforms like Steam more directly.
Steam's $10 Billion Gamble in 2023
Steam's lucrative year, fueled by a combination of expensive new releases and a thriving back catalogue, poses both opportunities and challenges for the gaming industry. For players, the normalization of higher game prices may increase upfront costs, while the success of back catalogue sales could lead to more sustainable support for older titles.
As the industry navigates its challenges, Steam's performance serves as a beacon of resilience. Whether this success prompts a broader shift in publishing philosophies or merely consolidates Valve's dominance remains to be seen. One immediate consequence, however, is clear: Steam's record-breaking year is set to leave a lasting impact on the gaming landscape.
"Despite the challenges facing the industry, our data shows that Steam is thriving, driven by both new releases and its extensive catalogue,"
Rhys Elliott
