During the first half of 2026, the Japanese market saw a notable uplift in PC and PlayStation hardware sales, climbing 13 percent to reach a total of 21 million units. The surge was largely propelled by the launch of Capcom’s latest flagship, Resident Evil Requiem, which quickly became the cornerstone of the period’s growth. Sensor Tower’s most recent Japan Game Market Insights report, which focuses exclusively on data from Steam and the PlayStation ecosystem, identified Capcom as the leading publisher for both platforms in terms of units sold.
Resident Evil Requiem distinguished itself with an unprecedented first‑month performance on Steam, moving an estimated 2.6 million copies in its opening window. Sensor Tower highlighted this achievement as a clear indicator of Steam’s expanding relevance for premium Japanese titles.
By leveraging the global distribution network of Steam, Capcom was able to tap into a broad, worldwide audience while still capitalizing on the series’ historic strength on consoles. The analyst firm noted that the game’s launch generated an average playtime of 25 hours per Steam user, the highest engagement figure recorded for any recent Resident Evil installment. A key factor behind the strong launch was the early establishment of a dedicated Steam store page, which went live 264 days before the official release.
This long‑lead promotional runway allowed the title to accumulate extensive wishlists and build sustained awareness across major regions, including the United States, China, Japan, and Europe. Sensor Tower explained that this multi‑regional buzz translated into continued playtime and sales momentum well beyond the initial launch week. By July, Resident Evil Requiem had surpassed eight million units sold globally, a milestone that contributed significantly to Capcom’s quarterly financial results. The game’s performance complemented the continued sales strength of older entries such as Resident Evil 4 and Resident Evil 2, which the company also reported as experiencing ongoing growth.
In addition, Capcom’s other major release, Pragmata, added further upside to the fiscal outlook. While console and PC sales flourished, the mobile segment displayed a contrasting picture.
In‑app purchase (IAP) revenue from mobile games fell 5.1 percent year‑on‑year to ¥1.56 trillion (approximately $10 billion), and total downloads dropped 5.4 percent to 585 million. Despite the contraction, Japan retained its status as the second‑largest mobile gaming market in Asia. According to Sensor Tower, Japanese mobile gamers generated twice the IAP revenue of South Korea and nearly four times that of Taiwan. Domestic revenue accounted for 65 percent of global IAP earnings, with the remaining 35 percent coming from overseas markets.
Japanese publishers captured 28 percent of all mobile game downloads in the second quarter of 2026. Sensor Tower observed that this share has stabilized since late 2026, though it remains below the 32 percent share recorded a year earlier, as foreign publishers continue to expand their foothold among Japanese players.
Advertising spend within the gaming sector also rose, reaching $749.7 million and delivering 208 billion ad impressions in the first six months of the year. This placed gaming as the third‑largest advertising category in Japan, underscoring the sector’s growing importance to marketers. In the mobile leaderboard, Konami’s eFootball emerged as the top‑grossing title from January through July 2026, followed by Monster Strike, Last War: Survival, and Whiteout Survival. Sensor Tower attributed eFootball’s dominance to Konami’s strategic alignment of football‑themed content with the heightened interest surrounding the World Cup, sustaining player momentum from April to July.
Meanwhile, Dragon Quest Smash/Grow claimed the top spot among action RPGs in both IAP revenue and overall earnings for the same period. Genre‑level analysis revealed that role‑playing games (RPGs) commanded the largest slice of mobile IAP revenue, accounting for 32.8 percent of total spend. Strategy games followed with 23.8 percent, while puzzle titles led in download volume, representing 37.8 percent of all mobile game installations. These figures illustrate the diverse preferences of Japanese gamers, who continue to support a wide array of game experiences across platforms.
Overall, the data paints a picture of a market in transition: PC and console sales are buoyed by high‑profile, globally appealing releases like Resident Evil Requiem, while mobile gaming faces modest declines in revenue and downloads but remains a substantial source of income and advertising activity. The interplay between domestic and international publishers, the growing significance of platforms such as Steam, and the strategic timing of content releases all play pivotal roles in shaping Japan’s gaming landscape for the remainder of 2026 and beyond.