Capcom's 'Resident Evil Requiem' Debuts as Best-Selling Game of 2026
Circana analyst Mat Piscatella said that Capcom's (CCOEY) "Resident Evil Requiem" debuted as the best-selling video game of 2026 as overall spending in February grew slightly when compared to a year ago, reaching $4.6B. The new "Resident Evil" game's blockbuster debut and a 27% boost in subscription services helped video game content spending stay flat when compared to February 2025. In hardware, Nintendo Switch 2 (NTDOY) drove 22% year-on-year spending growth. Hardware spending increased 22% when compared to a year ago, to $326M. Spending on Nintendo Switch 2 hardware offset year-on-year declines across PlayStation 5 (SONY), Switch and Xbox Series (MSFT) consoles. PlayStation 5 again led the hardware market in both unit and dollar sales. Nintendo Switch 2 repeated its January performance ranking 2nd across both measures. With nine months in market, the life-to-date installed base of Nintendo Switch 2 is trending 45% ahead of the original Nintendo Switch. February video game content spending was flat when compared to February 2025, at $4.0B. Non-mobile subscription content spending increased by 27% compared to a year ago, offsetting the declines experienced across other content segments. "Resident Evil Requiem" debuted as the best-selling video game of the year. It also ranked 1st in February across the PlayStation, Xbox and the aggregated PC storefront charts. Launch week dollar sales of "Resident Evil Requiem" were more than 60% higher than the launch week total of "Resident Evil Village," which came out in 2021, with unit sales increasing by more than 40%. Square Enix's (SQNXF) "Dragon Quest VII Reimagined" debuted as the 7th best-selling game in February while ranking 14th year-to-date. Other top-selling games for the month in the U.S. were Take-Two's (TTWO) "NBA 2K26," Microsoft's "Call of Duty: Black Ops 7" and "Minecraft," Sony's "Helldivers II," EA's (EA) "EA Sports FC 26," "Battlefield 6," and "Madden NFL 26," and Nintendo's "Mario Tennis Fever."
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- Joint Venture Formation: Sony and TCL have announced a joint venture where TCL will hold a 51% stake, encompassing Sony's BRAVIA TVs, projectors, and home audio equipment, with operations expected to commence in April 2027.
- Equity Transfer: As part of the partnership, Sony will transfer 100% equity of its Malaysian subsidiary, which manufactures home entertainment products, to TCL, further solidifying TCL's market position in this sector.
- Transaction Valuation: The total valuation of the joint venture is HK$5.2 billion, with TCL paying HK$3.8 billion (approximately $500 million) for its controlling stake, enhancing TCL's competitiveness in the global home entertainment market.
- Brand Usage Rights: The new company will utilize the
- Market Capital Showdown: In this episode, Motley Fool analysts Emily Flippen and Bill Barker faced off in a market cap range challenge involving 10 companies, engaging listeners and enhancing the show's interactivity.
- Championship Battle: Emily, the reigning Market Cap Game Show world champion, showcased her investment analysis skills against Bill, ultimately winning with a score of 7 to 3, solidifying her champion status.
- Investor Education: The show utilized a fun game format to help listeners understand the significance of market caps, increasing public interest in investing and promoting financial literacy.
- Industry Insights: Analysts discussed the market performance of various companies, including Adyen and PayCom, providing deep insights into current market dynamics to assist investors in making informed decisions.
- Strategic Partnership: Sony and TCL Electronics have entered into legally binding agreements to form a new company focused on home entertainment, expected to commence operations in April 2027, marking a significant collaboration in a rapidly evolving market.
- Equity Structure: The new company will be jointly owned, with TCL holding 51% and Sony 49%, as TCL subscribes to shares for approximately 75.4 billion yen, reflecting TCL's strong confidence and expansion plans in the home entertainment sector.
- Brand Continuity: Products from the new company will carry the Sony and BRAVIA brands, ensuring brand value continuity while leveraging both companies' technological and market strengths to enhance product competitiveness and meet consumer demand for high-quality home entertainment.
- Financial Impact: The new entity will become a wholly-owned subsidiary of TCL and an equity-method affiliate of Sony, which is expected to positively influence both companies' financial performance and further increase Sony's market share in the home entertainment sector.
- US Market Decline: US stock indexes fell for the fifth consecutive week, with the S&P 500 and Nasdaq dropping 3.9% and 5.2% respectively, while the Dow fell 2.8%, reflecting heightened stagflation concerns due to the Middle East conflict and trade disruption threats.
- International Market Dynamics: Despite the downturn in US markets, European equities rose 2.3%, indicating differing market expectations for economic recovery, particularly with strong performances in the UK and German markets.
- Japan's Economic Slowdown: Japan's core inflation dropped below the central bank's target for the first time, and manufacturing activity weakened, indicating pressure on economic growth, although the Nikkei 225 rose 3.7%, reflecting market optimism about future growth.
- Corporate News Highlights: ASML will supply advanced production equipment worth approximately $7.9 billion to SK Hynix, while Sony Group is nearing a $1 billion deal to sell a majority stake in its home entertainment business to China's TCL Electronics, showcasing trends of consolidation in the global tech industry.
- Market Uncertainty: The videogame industry is facing increasing uncertainty, prompting investors to reassess potential long-term stock opportunities.
- Investor Insights: Recent news provides insights for investors on which stocks may be attractive as the industry evolves.
- Growth Potential: Despite short-term challenges, the overall growth potential of the videogame sector remains a focal point for investment strategies.
- Stock Evaluation: Investors are encouraged to evaluate stocks based on the latest industry developments and trends.
- Price Increase Announcement: Sony is increasing the prices of its PlayStation consoles due to ongoing economic pressures.
- Cause of Price Hike: The rise in prices is attributed to soaring memory costs impacting the production of the consoles.










