Analyst: Revenue data from Q1 2026 indicates sustained interest in engaging single-player video games

In the first quarter of 2026, global revenue from gaming content rose by 3.6% to reach $54.14 billion, marking a continuous upward trend over the past seven quarters. According to S&P Global Market Intelligence, this revenue includes earnings from software, in-game purchases, and subscriptions, excluding hardware sales.

Tencent maintained its position as the largest player in the gaming industry, with a notable 8.4% increase in revenue to $9.60 billion. Meanwhile, NetEase, another prominent Chinese company, achieved a 12.3% boost in its gaming content revenue, reaching $3.62 billion, driven by titles like Where Winds Meet and Marvel Rivals.

Bar chart showing global gaming content revenue in billions of dollars from Q1 2023 to Q1 2026, with an orange line indicating the year-over-year percentage change in revenue. — Image credit: S&P Global Market Intelligence

Capcom and Pearl Abyss demonstrated some of the most significant revenue surges. Capcom's income jumped 89.8% to $451.8 million, greatly influenced by Resident Evil Requiem, its fastest-selling title. Pearl Abyss saw an even larger increase of 468.6% to $328.1 million, thanks to Crimson Desert's over five million copies sold.

The analysis by S&P highlights that despite the popularity of live-service games, there was substantial demand for single-player games in the first quarter. According to S&P, significant gains were observed among well-established publishers with strong portfolios in live-service games or rooted positions in China. However, the success of standalone titles suggests that consumers are still attracted to compelling game offerings.

Bar chart showing top companies by global gaming content revenue for Q1 2025 and Q1 2026, with year-over-year percentage change indicated by dots. — Image credit: S&P Global Market Intelligence

Roblox's revenue rose by 39.3% to $1.44 billion. Nexon, Bandai Namco, and Electronic Arts also experienced solid growth, with respective year-over-year increases of 29.8%, 28.7%, and 11.9%. On the other hand, Nintendo saw a notable rise of 37.7% in content revenue to $1.31 billion, attributed to the successful rollout of the Switch 2 and Pokémon Pokopia.

Sony's gaming revenue experienced a modest 6.3% rise year-over-year to $2.87 billion due to PlayStation's robust ecosystem for third-party and live-service games. However, they encountered a significant challenge with a $765 million impairment on Bungie, resulting in a 41.6% decrease in operating income in the fourth quarter.

For Microsoft, gaming revenue slightly decreased by 0.2% to $4.12 billion, affected by reduced Xbox hardware sales. Ubisoft faced a dramatic 48.7% drop, linked to Assassin's Creed's delayed release. Following this, Ubisoft announced the closure of studios and job reductions globally, impacting 380 positions.

Embracer Group saw a 35% decline, and Sega's revenue dropped 16.7%, partly due to Sonic Rumble Party's lackluster performance. Additionally, Sega recorded a $200 million impairment related to its acquisition of Rovio in 2023.

Analyzing platform growth, PC outpaced others with a 7.8% increase to $12.11 billion, capturing a market share of 22.4%. Mobile games remained the largest category at $30.53 billion but experienced slower growth at just 2.5%. Console gaming showed the least growth, with a 1.3% increase to $9.81 billion.

S&P's findings are derived from publisher and platform holder reports, industry discussions, surveys, and other research tools.