The video game industry is in dire straights. Years of mismanagement and atrophy of the cultural ecosystem has resulted in non-stop closures, cancellations and collapse. Does that mean the money’s gone? No, no. It seems the money is still there. And a whole lot of it seems to be going Valve’s way.
In case you were wondering how Gabe Newell afforded that new mega yacht, Alinea Analytics’ Rhys Elliott reports that Steam is on its way to its most lucrative year ever. Already generating $11 billion in gross revenue in the first half of 2026, a dense autumn release schedule will likely tip the platform into record numbers. Some of the reasons for this you might appreciate. New players. Surprise hits. But one big source of cash flow could get your blood boiling.
“Steam did more in the first six months of 2026 than in all of 2020,” writes Elliott, “a year when the entire world was locked indoors and buying games to cope, and nearly matched 2021.”
The first half of 2026 has already given PC gaming a few mega-hits, with Resident Evil Requiem, Forza Horizon 6 and Crimson Desert generating nearly $200 million each in Steam sales alone. It’s a considerable lead on the other chart toppers, Slay the Spire II, Subnautica 2 and dark horse newcomer Meccha Chameleon.
One thing those three leading blockbusters have in common is a huge price tag, with a $70 asking price ($100 bucks in my humble maple-scented currency). Elliott believes these higher price points on major new releases are one of the leading reasons for Steam’s steadfast windfall, as they become the norm across all platforms.
It’s not the sole reason, and Elliott notes that new releases account for less than a fifth of sales. Asian markets, China especially, are embracing Steam in droves. Major studios who tried to compete with Steam with their own clients, like Ubisoft’s Uplay, learned to kiss the ring and assimilate. While the little Meccha Chameleon’s success is staggering, it’s only the latest in a line of oddball, inexpensive multiplayer games which Steam has become a primary host for.
One big lesson Elliott emphasizes is how much action happens in the back catalogue. Despite breaking revenue records, that gross is made up less of new releases than ever, trending down 6 percent from last year. Major publishers put a lot of weight on release window returns, when it seems players are far more likely to grab games years after launch. It’s a scenario that closely resembles the one that balanced the numbers in Hollywood, when home video sales made hits out of Fight Club and The Nightmare Before Christmas years after being deemed a dud. It should encourage more open-minded, long-tail publishing philosophies in the industry, but unfortunately it is currently being led by short-term obsessives.
And that’s why Gabe gets the bigger boat.