The gaming industry is experiencing a surge in demand for artificial intelligence, leading to increased hardware prices, such as the new Steam Machine exceeding ,000 despite its specifications. PlayStation plans to stop producing physical media for the PS5 by 2028, causing backlash from fans. Xbox has laid off 1,600 employees and anticipates more layoffs by the end of the 2027 fiscal year. Xbox has introduced backwards compatibility for PC, allowing access to four classic titles: Blinx: The Time Sweeper, Fuzion Frenzy, Crimson Skies: High Road to Revenge, and Conker: Live and Reloaded, with enhanced features like customizable upscaling and resolution options. There is a growing interest in preserving gaming history, particularly for classic titles from the PS1, PS2, and PS3 eras, as the industry shifts towards an all-digital future.
Epic Games and Google have withdrawn their proposed settlement regarding app distribution on Android, which included a program for registered app stores. This decision allows Google to permit third-party app stores on its platform. The legal dispute began when Epic accused Google of monopolizing Android app distribution. Despite multiple victories for Epic, the companies attempted a settlement that included new billing options and reduced fees, but concerns about sideloading apps led to its abandonment. Google plans to invite other app stores starting July 22 in the United States.
In the first half of 2026, Steam generated an estimated .1 billion in gross revenue from game sales, setting a record for the platform. This amount is nearly equal to Steam's total revenue for all of 2021. Only 21% of this revenue came from games released in 2026, with the majority from Steam's back catalog. The top new release, Forza Horizon 6, earned approximately .7 million, followed by Resident Evil Requiem at .5 million and Crimson Desert at [openai_gpt model="gpt-4o-mini" prompt="Summarize the content and extract only the fact described in the text bellow. The summary shall NOT include a title, introduction and conclusion. Text: Steam Achieves Record-Breaking Revenue in First Half of 2026
Steam has marked a significant milestone, reporting its most successful half-year performance to date. In the first six months of 2026, the platform is estimated to have generated an impressive .1 billion in gross revenue from game sales, setting a new record for the PC storefront. This remarkable figure is nearly equivalent to the total revenue Steam achieved throughout all of 2021, a year that saw a surge in gaming activity due to pandemic-related lockdowns. Notably, only 21% of this revenue stems from games released in 2026, with the majority coming from Steam's extensive back catalog.
According to Alinea Analytics, the standout title for new releases on Steam this year is Forza Horizon 6, which has amassed an estimated 7.7 million in revenue since its launch. Following closely behind are Resident Evil Requiem at 4.5 million and Crimson Desert at 0.1 million. These figures underscore the impact that a few blockbuster releases can have on the overall revenue generated by the platform.
The report identifies several key trends contributing to this revenue surge. One significant factor is the growth of the user base in Asia, particularly in China, which has emerged as a vital source of new players and increased spending. Additionally, publishers are increasingly releasing high-priced games and leveraging prominent partnerships to enhance their market appeal.
Interestingly, many publishers who initially sought to direct users to their own PC launchers have returned to Steam, as gamers have shown a preference for the established platform. Steam has cultivated a sense of stability and reliability, offering features such as backward compatibility, regional pricing, frequent sales, and dependable access to past purchases. This ensures that players can revisit games they purchased years ago without the concern of hardware or operating system changes.
Valve has also been proactive in expanding Steam's compatibility beyond the Windows ecosystem. Initiatives like SteamOS, Proton, and related compatibility layers are designed to enable Windows-based PC games to run on various hardware and operating systems, including handheld devices and non-Windows platforms. While these advancements may go unnoticed by the average user, the overarching aim is to allow gamers to purchase a title once and enjoy it across multiple devices.
In contrast, other storefronts have adopted different strategies. The Epic Games Store, for instance, has attracted users by offering free games. However, former employees have noted that many players tend to claim these free titles only to return to Steam for the majority of their gaming and spending activities.
Alinea's long-term projections illustrate the evolution of Steam's market position over the past decade. The firm's analysis indicates that Steam's annual revenue has surged from approximately .5 billion in 2017 to an estimated billion in 2025. With .1 billion already recorded in the first half of the year and continued robust spending on older titles, Valve's influence in the PC gaming landscape continues to expand." max_tokens="3500" temperature="0.3" top_p="1.0" best_of="1" presence_penalty="0.1" frequency_penalty="frequency_penalty"].1 million. The growth of Steam's user base in Asia, particularly China, has significantly contributed to this revenue increase. Many publishers have returned to Steam due to user preference for the platform, which offers features like backward compatibility and frequent sales. Valve is also expanding Steam's compatibility with initiatives like SteamOS and Proton. Steam's annual revenue has grown from approximately .5 billion in 2017 to an estimated billion in 2025.
Compulsion Games has regained its independence after layoffs at Xbox and is seeking new collaborations within the games and entertainment industry. The studio's game, South of Midnight, has won several awards, including a BAFTA Award, a Peabody Award, and seven Canadian Game Awards, and has been recognized on multiple 'Best Games of 2025' lists with an 83% review score. Despite its critical acclaim, the game did not achieve blockbuster sales, leading to concerns about the studio's long-term viability. Compulsion Games was founded in 2009 and has previously provided services to other studios. Before their independence announcement, several employees began exploring new job opportunities with the support of studio leadership, reflecting uncertainty within the studio.
The video game industry is experiencing closures and cancellations, yet Steam is set for its most profitable year, having generated a billion in gross revenue in the first half of 2026. Steam's performance has nearly matched that of 2021, with blockbuster titles like Resident Evil Requiem, Forza Horizon 6, and Crimson Desert each earning nearly 100 million in sales. Premium pricing for new releases is a key factor in revenue growth, although new releases account for less than 20% of total sales. Asian markets, especially China, are increasingly embracing Steam, and many studios are adapting to align with its ecosystem. A significant portion of Steam's revenue comes from its back catalogue, which has seen a 6% decline in new release contributions compared to the previous year, indicating a trend towards long-tail publishing strategies.
Indie developer Crux Game Studios is offering two free games, Within and Decrypt, available for download on Itch.io until July 13. Within is a 30-minute game where players control Maya, who confronts nightmarish foes to rescue her brother, Nikil. Decrypt is a sci-fi survival-horror game that takes about an hour to complete, where players investigate a missing cargo ship and uncover a sinister reality.
The Epic Games Store is offering two free games from July 9th to July 16th: Tattoo Tycoon and Nova Lands. Tattoo Tycoon, developed by CrazyBunch and released in October 2025, allows players to manage a tattoo parlor, featuring isometric management mechanics and a mini-game for tattoo application, though it has received criticism for clunky controls. It holds a “Mixed” rating on Steam. Nova Lands, developed by Behemutt and launched in June 2023, is a base-building simulation with a retro 2D art style, averaging a score of 79 on Metacritic and also holding a “Mixed” rating on Steam. Players gather resources to automate processes and expand their bases, with simplistic combat mechanics. The next free titles will be Echo Generation: Midnight Edition and Luto, available from July 16th to July 23rd.
John Carmack, co-founder of id Software, expressed sadness over the recent layoffs at the studio, which saw 96 employees at its Richardson location and 40 remote positions cut, representing a 50% workforce reduction. This restructuring is part of a broader initiative by new Xbox CEO Asha Sharma, which has resulted in 1,600 staff layoffs earlier in the week, with another 1,600 expected throughout the financial year. Carmack suggested that id Software may have been viewed as a "marginal business" within Microsoft's portfolio and noted that its financial contributions to Microsoft appear minimal compared to the tech giant's overall revenue of 1.72 billion. He reflected on the competitive nature of the gaming industry and questioned whether different strategies could have improved id Software's financial performance. Despite the layoffs, he remains hopeful for the studio's future. Fellow co-founder John Romero also expressed support for the affected staff and emphasized the importance of preserving the legacy of iconic franchises like Doom, Quake, and Wolfenstein.
PC gamers can claim, download, and retain ownership of the story-driven crime game "Whiskey Mafia: Leo's Family" for free, without any digital rights management (DRM) restrictions, through a limited-time offer from IndieGala. The game typically retails for a modest price, providing significant savings for players.
