The Horror Genre Thrives in the Gaming Industry

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How it started
Resident Evil has been a staple for 30 years, and the survival horror franchise is experiencing a surge in popularity. The latest installment, Resident Evil Requiem, has sold 8 million copies since its February launch, making it the 14th best-selling game in Capcom’s history. Meanwhile, a reboot of the Resident Evil film series directed by Zach Cregger is on track to become the highest-grossing film in the franchise. This resurgence has sparked renewed interest in the series; a report indicates that six different titles in the franchise have each sold over 3 million copies this year. Capcom described this phenomenon as “a virtuous cycle in which sales of both new and past titles grow together.”

Resident Evil isn’t an isolated case; it reflects a broader trend. Horror, once considered a niche genre, has evolved into a dominant force, fueled by factors like the rise of YouTube, the impact of indie games, and viral memes. Horror games are generally cheaper to produce, and now they’re achieving sales figures that rival major blockbusters. While there have been significant horror successes in the past—like 2017’s It, the highest-grossing horror film ever, and the nearly 20 million copies sold of the Resident Evil 2 remake in 2019—the concentration of horror hits across various media in 2026 has reached unprecedented levels, underscoring that scaring audiences is big business.

How it’s going
The most striking examples of this trend in 2026 are in film. Obsession and Backrooms, two projects from young directors who rose through YouTube, have collectively grossed nearly $1 billion at the box office, surpassing established franchises like Star Wars and even iconic directors like Steven Spielberg. Remarkably, these films were produced for a fraction of the typical blockbuster budget; Backrooms was made for around $10 million, while Obsession cost less than $1 million. Prior to this, Iron Lung, another horror film rooted in YouTube culture, earned over $50 million without major studio backing. Horror films have always been relatively inexpensive to produce, but they are now frequently yielding substantial returns.

In the streaming arena, October has become a competitive landscape. This year, nearly every major service has launched a flagship series to attract subscribers during the spooky season. Amazon recently released a remake of Stephen King’s Carrie on Prime Video, directed by Mike Flanagan, known for his successful horror series on Netflix from 2018 to 2023, starting with The Haunting of Hill House. With Flanagan now at Amazon, Netflix’s big release is Below, a six-episode sea monster thriller featuring Josh Hartnett and Charlie Heaton from Stranger Things. Additionally, Peacock is airing a Friday the 13th prequel titled Crystal Lake, starring Linda Cardellini as Jason Voorhees’ mother, while AMC Plus is launching a spooky detective series called Yaga, featuring Carrie-Anne Moss and Hudson Williams. Disney Plus is also in the mix with the 13th season of American Horror Story.

The only major player missing from this lineup is Apple TV, which got ahead of the curve by releasing the horror-comedy hybrid Widow’s Bay back in April. The show has since won a record number of Emmys and remains a top contender on Apple TV’s most-watched list. While streaming viewership data is less accessible than box office figures, the fact that every major streaming service is investing in horror series with notable star power highlights the genre’s growing significance.

And then there are games. While Resident Evil leads the pack, many other titles and franchises are thriving in this horror renaissance. Silent Hill continues to gain traction, especially with the Scottish spinoff Townfall this year, and the iconic Hellraiser has finally received a proper video game adaptation. Indie horror games are not only consistent bestsellers on platforms like Steam but have also inspired several moderate theatrical hits, including Iron Lung and Exit 8. Much of this success is driven by viewers tuning into horror games on Twitch and YouTube; Twitch reported that viewers watched 287 million hours of horror content from January to September this year, with the dedicated “horror” tag seeing a 6 percent increase in viewership compared to last year.

What happens next
With the potential for high returns on low investments, movie studios are eagerly embracing this trend. Kane Parsons is reportedly set to direct a sequel to Backrooms, while Obsession director Curry Barker has a new film slated for next year, and Cregger’s next project boasts significant star power. Studios are on the hunt for the next big horror hit, with both A24 and Neon developing competing films set in the SCP Foundation universe—a fan-driven project about a secret organization that contains supernatural entities. Warner Bros. has also acquired the rights to the internet sensation Siren Head. Meanwhile, both Silent Hill and Resident Evil have established a near-annual release schedule, with Capcom noting that the ongoing success of Resident Evil has led to a new quarterly sales record. The horror fixation among major streaming services shows no signs of waning; Amazon even secured Flanagan from Netflix with an exclusive deal, and a struggling Xbox is investing in bringing Hideo Kojima’s horror game OD to consoles.

Not every project will achieve blockbuster status, and not every spooky meme will reach Backrooms-level fame. However, studios, streamers, and game developers are taking the genre more seriously now, recognizing its potential and showing a willingness to take risks due to lower upfront costs. This means that, unlike other genres, horror may continue to thrive in its weirdness and unpredictability, as the best way to scare audiences is to present them with something fresh.

By the way
* Success in one medium doesn’t always translate. While Silent Hill has regained its footing in gaming, the latest film adaptation has largely faded from memory.
* The SCP Foundation has attracted significant interest from major film studios, though not without controversy due to its Creative Commons origins.
* Beyond box office success, 2026 has been a standout year for horror films, with titles like Send Help, Hokum, and 28 Years Later: The Bone Temple making waves.
* Another potential avenue for horror is interactive shows; Netflix is exploring this with Unhinged and an upcoming Conjuring spinoff.