Development
Xsolla report reveals direct-to-consumer is reshaping video game monetization
July 15, 2026•3 min
Xsolla has released the latest edition of The Xsolla Report, revealing that direct-to-consumer (D2C) commerce has evolved from an emerging trend into a core business strategy for game developers. As regulatory changes reshape digital marketplaces and publishers seek greater control over player relationships, D2C is rapidly becoming the new baseline for monetization across mobile and PC gaming.
For years, mobile game revenue has largely depended on platform-controlled billing, with major app stores managing in-app purchases and charging commissions of up to 30%. However, evolving regulations and legal rulings across the United States, the European Union, Japan, and other regions are opening the door to external payment options, giving developers more flexibility over how they sell digital content.
“This is no longer a theoretical shift,” said Chris Hewish, President of Xsolla. “What we are seeing is the emergence of a new commercial baseline for the industry. The combination of regulatory change, infrastructure maturity, and publisher adoption has moved direct-to-consumer from an edge case to a core growth driver.”
“The misconception of D2C simply being about replacing platform revenue misses the point,” said Berkley Egenes, Chief Marketing & Growth Officer at Xsolla. “The real transformation is operational. Studios are building direct relationships with players, optimizing for lifetime value, and using owned channels to improve margins and engagement at scale.”
By treating direct commerce as a long-term strategic channel, developers can strengthen player relationships, improve profitability, and position themselves for sustainable growth in an increasingly competitive global video game market.
Strong revenue growth drives adoption
The report highlights the financial momentum behind the shift. While the overall mobile gaming market grew by just 0.2% in 2025, D2C revenue increased by 26%. Even more notably, the top 100 mobile titles recorded a 38% year-over-year increase in D2C earnings, demonstrating a widening gap between developers embracing direct sales and those relying solely on traditional app store distribution. Leading publishers are already seeing results. Companies including Playtika, SciPlay, Stillfront Group, and Huuuge Games have significantly expanded the share of revenue generated through D2C channels, reinforcing the model as a long-term growth strategy rather than a short-term experiment.Beyond higher margins
The report reveals the benefits of D2C, which extend well beyond cost savings. By building direct relationships with players, studios gain greater ownership of customer data, improve engagement, and increase lifetime player value. While D2C involves operational costs such as payment processing, fraud prevention, tax compliance, and infrastructure, publishers can still achieve net savings of 10% to 20% compared with traditional platform fees. The report also notes that success increasingly depends on a robust global commerce infrastructure, including localized payment methods, regional pricing, and seamless distribution to support players across diverse markets.A global opportunity for growth
Emerging markets are expected to fuel the next wave of industry expansion. Southeast Asia, Latin America, and the Middle East continue to see rapid growth in video game audiences, supported by increasing investment and evolving digital ecosystems. Rather than replacing traditional platforms, Xsolla believes the most successful studios will combine platform distribution with D2C strategies.
“This is no longer a theoretical shift,” said Chris Hewish, President of Xsolla. “What we are seeing is the emergence of a new commercial baseline for the industry. The combination of regulatory change, infrastructure maturity, and publisher adoption has moved direct-to-consumer from an edge case to a core growth driver.”
“The misconception of D2C simply being about replacing platform revenue misses the point,” said Berkley Egenes, Chief Marketing & Growth Officer at Xsolla. “The real transformation is operational. Studios are building direct relationships with players, optimizing for lifetime value, and using owned channels to improve margins and engagement at scale.”
By treating direct commerce as a long-term strategic channel, developers can strengthen player relationships, improve profitability, and position themselves for sustainable growth in an increasingly competitive global video game market.
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Download The Xsolla Report by visiting: https://xsolla.com/the-xsolla-reportFeatured articles
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