U.S. loses grip on $121 billion mobile gaming sector to China

As recently as early 2024, the U.S. and China were virtually neck-and-neck in terms of revenue share from the world’s top 100 mobile games. But by mid-2026, China held 40% of the global market, compared with just 16.5% for the U.S. | BLOOMBERG

Nov 11, 2026

Yang Liu’s parents planted roots in suburban Michigan hoping their son, who was born in China, would find success in the world’s biggest economy. In early 2020, they got their wish: End Game Interactive, the mobile game startup he co-founded in their home, raised $3 million on the back of breakout hit “Zombs Royale.”

Then, the U.S. still commanded a major slice of what’s now a $121 billion global industry thanks to games like “Temple Run,” “Plants vs Zombies” and “Pokemon Go.” But now, Liu is one of a generation of American game designers despairing as Chinese studios churn out games that are faster, cheaper and able to extract more spending from players. Operating costs in the U.S. are now so high that Liu is building out his business in Latin America, where he employs more than 40 people.

“It’s extraordinarily hard for startups like ours — despite having an incredible amount of capital — to find individuals to compete on the global stage, which gaming has become in the past 10 years; and one in which the U.S. is no longer the dominant force,” Liu said.

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