Mobile Puzzle games had a great run in 2025, generating over $10B in in-app purchase (IAP) revenue (+14% YoY) according to Sensor Tower, and making it the second highest grossing genre after Strategy. The genre also dominated downloads, garnering over 9.7B downloads in 2025 alone.

In terms of individual titles, 2025’s highest grossing Puzzle title was Dream Games’ Royal Match, which grossed over $1.4B in IAP revenue in 2025, making it one of the top three highest grossing mobile games of the year. King’s Candy Crush Saga came second, which grossed over $1.1B in 2025. Additionally, Microfun’s breakout merge hit, Gossip Harbor, generated over $650M in 2025, beating out Playrix’s Gardenscapes for third place, which grossed over $500M last year.

In terms of publishers, Dream Games was the standout Puzzle genre leader, growing both revenues and downloads through its Royal Match and Royal Kingdom one-two punch Match-3 portfolio. Veterans like King and Playrix slightly contracted while defending their strong market positions. They were followed closely by Take-Two Interactive and its well monetized portfolio of Puzzle games. 

The rising challenger over 2025 was Microfun with its portfolio of highly performant Merge titles, Gossip Harbor and Seaside Escape. This Chinese publisher proved that it has the user acquisition(UA) appetite and talent quality to go after Match-3 and Merge incumbents in earnest. This hints at the magnitude of the competitive threat Chinese mobile Puzzle developers might be for their Western counterparts over the next few years.

However, these top-level revenue numbers don’t tell the whole story of Puzzle. More recently, the Puzzle genre has exploded in terms of subgenres that are differentiated by core gameplay. Beyond Match-3, Merge, and Blast (collectively hold ~70-75% genre revenue share), the Puzzle genre now also contains a few other nascent, but sizable subgenres like Match Pair (with Match Factory and Triple Match 3), Sort (with Magic Sort and Hexa Sort), Block (with Block Blast and Color Block Jam), and more. The revenue distribution by subgenre over 2025 is shown below.

Significant player interest in some of these newer subgenres can also be seen when looking at the downloads distribution by subgenre. While Match-3, Merge, and Blast titles drove over a third of Puzzle genre downloads over 2025, it was the new subgenres like Match Pair, Sort, Block, Screw, and others that drove the rest.

However, what’s most interesting to note is that Puzzle’s +14% YoY growth did not come from Match-3, the largest subgenre of Puzzle. While Merge (mostly Gossip Harbor) contributed to 60% of the YoY genre growth, a majority of the remaining 40% came from newer subgenre’s like:

1. Sort: 13% contribution to YoY growth from games like Magic Sort.
2. Block: 13% contribution to YoY growth from games like Color Block Jam.
3. Screw: 8% contribution to YoY growth from games like Screwdom.

There is a ton of core gameplay innovation occurring in these newer Puzzle subgenres, and these innovative developers are not only gaining genre market share but also growing the size of the genre itself. 

Some games from these newer subgenres also cracked the top 25 grossing Puzzle games list over 2025, such as Match Factory, Color Block Jam, and Screwdom, with many more existing in the top 26-50 list.

While we’ll aim to cover these newer Puzzle subgenres in more depth in future newsletters, the rest of this article will maintain a focus on Match-3 and Merge, since those are the biggest Puzzle subgenres by far and their games make up a majority of the top 25 Puzzle grossing list from 2025. Let’s dig into three strategies, amongst others, shaping their successes.

Three Strategies Setting Match-3 and Merge Winners Apart

The competition in the Match-3 and Merge is fierce. While Candy Crush Saga dominated the market for the longest time (and continues to be an absolute juggernaut), it has faced tough competition from Gardenscapes since 2018, and was overtaken by Royal Match in 2024. Gossip Harbor’s meteoric rise throughout 2025 is now further shaking things up.

In terms of MAUs, Candy Crush Saga dominates consistently. Being a household name since the 2010s has given the title a long-term resilience unlike any of its peers. However, having more players alone does not always translate to consistent market leading revenue success. Some Puzzle games are able to do more with less, as showcased by Royal Match beating out Candy Crush Saga’s monthly revenues with half of the MAUs. However, note that Candy Crush Saga’s ad revenues are not included in this comparison, which might bring both titles more neck and neck (since Royal Match does not contain ads).

Differences in IAP ARPDAU is one key area where the active user gap is being compensated for. At $0.31, Gossip Harbor’s IAP ARPDAU was nearly double that of its closest competitors over 2025. Royal Match boasted a lucrative IAP ARPDAU of $0.17 versus Candy Crush Saga’s $0.11.

Beyond live-ops volume, density, and quality differences between these games, one big caveat for these IAP ARPDAU differences is likely each game’s investment level in UA. Newer games (like Gossip Harbor and Royal Match) are sourcing the majority of their downloads through targeted paid channels; veterans like Candy Crush Saga enjoy considerable brand recognition and therefore large untargeted organic download volumes; Playrix lives somewhere in the middle.

Taken together, these dynamics signal that market leadership in Match-3 and Merge goes beyond scale alone. Behind the scenes, there are a flurry of impactful strategic choices that allow top games to consistently outperform in revenue, retention, and UA efficiency. We’d like to highlight three.

#1: Understanding the Audience

According to a Mistplay survey, 84% of Puzzle gamers seek relaxation, while 81% are women. Further, ~46% play 2-4 games per week, while 36% spend 10-25% of their phone time on mobile games. Put together, the overwhelming female Puzzle audience is clearly willing to dedicate time to mobile gaming, but they’re also fickle when choosing which games to invest their time into, especially when the game experience isn’t going to be relaxing overall.

While Match-3 and Merge audience insights definitely go way deeper than this, the point is that leading Match-3 and Merge games are the ones taking advantage of such statistics and optimizing their gaming experiences towards their core audiences. For example, there is a reason why most leading Match-3 and Merge games are generally relaxing and pleasing to look at… or are based on more female-resonating themes… or are moving towards simplifying various game systems to make gameplay more casual… or innovate heavily on their live-ops content to keep the game experience fresh versus competitors.. As you can imagine, the examples go on and on. Read our pieces on Royal Match, Gossip Harbor, or Travel Town to learn more.

#2: Breaking the Monotony through Deceptively Deep Live-ops

As we’ve previously covered, leading Match-3 and Merge games heavily lean on live-ops to break their core and meta progression monotony, and instead introduce large volumes of gameplay variety at a regular cadence. While this has historically been done through in-game events, we’re now seeing it done a few other ways.

For example, new features that blend inspiration from multiple casual and midcore genres are regularly being launched. Klondike-like “Expedition” events in Match-3 and Merge games take players into an interactive map that they can explore by spending a special event currency obtained through core gameplay. Popularized by Playrix across its Puzzle portfolio, Expeditions are now being adopted across various Match-3 and Merge titles to drive revenue, retention, and engagement.

An increase in minigame integrations is also being observed to provide players with a wide range of gameplay options, all within one app. Said differently, leading Match-3 and Merge games are working to create more reasons to continue playing, while reducing reasons to find entertainment and relaxation in competing experiences (both gaming and non-gaming). Royal Match excels at this with their plethora of minigame events that feature attractive visuals and animations that break core gameplay monotony. 

Additionally, social gameplay layers are being utilized to further amplify the business impact of increased gameplay variety through live-ops. A good example of this is both cooperative and competitive PvP events in leading Match-3 and Merge titles, as we previously covered.

Overall, the top Match-3 and Merge titles are utilizing the above tactics with such high intensity and frequency, resulting in a deceptively deep live-ops roadmap that maximizes long-term retention and revenue. However, they’re still able to maintain a relatively relaxing gameplay experience more broadly, which is also in-line with one of the key motivations of this target audience.

#3: Utilizing Hybrid Monetization Opportunities

While most Match-3 and Merge titles significantly rely on IAP monetization, some leading titles are increasingly paying attention to monetizing players who choose not to spend through IAPs. The business benefits of embracing such a hybrid monetization strategy are further amplified by the audience scale commanded by these titles, one that spans both Tier-1 (IAP-friendly) and Tier-2 (not so IAP-friendly) markets.

For example, Candy Crush Saga employs a well designed ad monetization strategy that allows players to watch ads and receive extra moves or boosters when they need it the most during gameplay. According to some estimates, this strategy drives ~$200M in ad revenue per year for King. Gossip Harbor is another example that intelligently applies hybrid monetization, with some sources estimating 15%-20% of the game’s revenue being generated through ads (which is ~$100M in ad revenue over 2025). Most of the top grossing Puzzle games over the last two years leverage hybrid monetization, which indicates this is an enduring monetization strategy for the Puzzle genre.

Closing Thoughts

Overall, 2025 reinforced that success in Match-3 and Merge is no longer defined by legacy scale or brand recognition alone, but instead by how effectively teams translate increasingly midcore-like depth – in live-ops, content volume, and progression systems – into experiences that still feel highly accessible and relaxing. 

More recent top performers proved that it’s possible to outperform on revenue with fewer users by driving higher monetization depth, breaking gameplay monotony through deceptively rich live-ops, and expanding the monetization surface area to both paying and non-paying players. At the same time, Puzzle’s broader growth story highlights a healthy tension: while Match-3 and Merge remain the genre’s economic backbone, competitive pressures and adjacent subgenres are steadily raising the bar for strategic execution and innovation across the genre.

Looking ahead, this dynamic makes the Puzzle market both unforgiving and full of opportunity. Leadership positions are earned continuously rather than protected by first-mover advantage, creating real openings for new entrants willing to move fast and execute with excellence. Yet despite the intensity of competition, the genre’s scale, durability, and highly engaged audience remain intact – providing a strong foundation for continued innovation. As developers keep borrowing from other genre playbooks while preserving Puzzle’s core appeal, Match-3 and Merge are well positioned to remain long-term winners in 2026 (and likely beyond).

A Word from Our Sponsor: Lightspeed

Partnering with Extraordinary Founders in AI, Gaming, and Interactive Media

Lightspeed is a globally leading VC firm with 13 offices, more than $29 billion in assets under management, and over 200 exits across the U.S., Europe, and Asia. With its dedicated gaming & interactive media practice, the firm invests from an over $6.5 billion pool of early and growth-stage capital—by far the most extensive set of funds in the sector.

According to InvestGame, founders selected Lightspeed as the #1 lead investor in the gaming industry in 2023 and 2024. Selected portfolio companies include Anthropic, Believer Entertainment, Epic Games, Gardens Interactive, Inworld AI, k-ID, Mistral, Pika Labs, Snap, Suno, Tollbit, Tripledot Studios, Volley, xAI, and 1047 Games.

Lightspeed also hosts the annual CEO Forum at GDC, the annual gathering of gaming, media, and AI CEOs, in partnership with Goldman Sachs and McKinsey. Together with GamesBeat and Nasdaq, the firm runs Game Changers, an annual list that celebrates and accelerates extraordinary gaming and interactive media startups.

The investment team and its Advisory Council combine deep gaming, consumer, and enterprise technology expertise with an international multi-stage investment platform and a culture that puts founders first. 

In Other News

💸 Funding & Acquisitions:

• Saudi Arabia's PIF to transfer $12B in gaming shares to Savvy Games Group.
• China’s telecoms giants bet on AR smart glasses with major investment in RayNeo
• India-based developer and live services firm, Liquidnitro Games, completes $19.1M Series A funding round.
• Loom Games secures seven-figure Seed funding.
• Liftoff files for IPO in the US.

📊 Business & Products:

• Games industry M&A hit a record $161B in 2025.
• Scopely’s Monopoly Go is the fastest mobile game to hit $6B.
• Paramount sues Warner Bros. Discovery over Netflix offer disclosure.
• Arc Raiders has sold 2.4M copies in 2026 so far.
• Red Dead Redemption passes 3.3M Netflix downloads while paid game struggles past 10K.

👾 Miscellaneous:

• Awesome Games Done Quick 2026 raises over $2.4M.
• How games shape AI and how it can be a "saviour to many companies".
• Why installs alone no longer define games growth.
• LEGO Pokémon sets launching in February.
• Clair Obscur: Expedition 33 receives most nominations for Game Developers Choice Awards 2026.

A Word from Our Sponsor: Overwolf

Integrate Safe UGC Into Your Game with CurseForge For Studios

Overwolf is an all-in-one platform that lets creators build, share, and monetize in-game apps, mods, and private servers. With over 178K creators and 113M monthly active users, Overwolf supports the world’s most popular AAA titles such as League of Legends, Minecraft, World of Warcraft, and 1,500 other games.

For game developers, Overwolf offers CurseForge For Studios. CurseForge For Studios is a white-label solution that lets game makers and publishers easily integrate mods safely and seamlessly into their games, both existing and new, at zero cost. It’s battle-tested by AAA studios and games, including Krafton (inZOI), Studio Wildcard (ARK), Take-Two Interactive (KSP), and others.

CurseForge For Studios offers:

• Cross-Platform Modding: Integrate Overwolf’s open-source SDK and plugins to let players discover and install mods in-game, across all platforms and storefronts.
• Moderation to Ensure Safety: Studios define policies and guidelines on what is permitted, with Overwolf ensuring that only authorized and appropriate content is published. 
• Creator Relations and Payments: CurseForge supports creators with monthly payments, equity investments, developer contests, and hackathons to kickstart content creation for your game.
• Harness Existing Creator Community: Tap into the creative expertise and knowledge of a passionate community of 178K creators.
• Premium Mods Integration: Crafted by game studios and select community modders, Premium Mods offer players a next-level modding experience through guaranteed high-quality content, while offering creators a powerful new revenue stream.

Content Worth Consuming

The New Owner of GOG Discusses Taking on Steam, the Devil of DRM, and Following in Nightdive's Footsteps (gamesindustry.biz): “Just after Christmas, the surprise news emerged that GOG, the DRM-free distribution platform focused on classic games, had been sold by Cyberpunk 2077 developer CD Projekt RED (CDPR). The buyer was Michał Kiciński, who co-founded CDPR alongside Marcin Iwiński back in 1994, but who left the firm well over a decade ago. Originally known as Good Old Games, GOG was launched by CDPR in 2008, and although it still retains its original dedication to distributing older titles, it now also distributes new games – like the controversial Horses from Santa Ragione, which both Steam and the Epic Games Store refused to feature on their storefronts. But why did CDPR decide to sell GOG? Why did Kiciński buy it? And what does he intend to do with his new purchase?”

Q4 2025 Video Game Market Update Report (Aream & Co.): “Q4-25 gaming M&A shifted to smaller, strategic deals, with value at $0.5B and volumes up 34% YoY (39 deals), led by active Asian acquirers and continued interest in tools/tech. Capital markets funding normalized to $1.7B, driven by Tencent’s $1.25B Ubisoft investment, Azerion’s bond issuance, and a rebound in IPO activity via Coffee Stain. Private investment recovered to $0.9B (+29% YoY) across 102 deals, with VC focused on gaming tech (incl. AI) and mobile studios in Türkiye. Consumer spend stayed resilient: Steam PC revenue grew +20% YoY LTM, console revenue rose +13% YoY, mobile IAP stabilized at $20.7B, and Roblox payouts jumped 41% YoY to $1.3B LTM.”

Split Fiction’s Josef Fares on Clair Obscur Success, AI Fears and EA’s Reputation (The Game Business YouTube Channel): “We're joined by Hazelight boss Josef Fares, the creative mastermind behind A Way Out, It Takes Two and Split Fiction — games that have collectively sold more than 43 million copies. In our chat with Fares, we discuss the state of the industry, the impact Clair Obscur: Expedition 33 might have on publishers, their relationship with EA, AI, and how to unlock the 'creative monster' in his staff.”

Using AI for Audience Insights and Analysis(with Francesco D’Orazio) (Mobile Dev Memo Podcast): “My guest on this week's episode of the podcast is Francesco D'Orazio, the President and Chief Product Officer at Pulsar, an audience intelligence and insights platform. The topic of our conversation is the use of AI to develop an understanding of a product's existing audience for feature planning, marketing, and optimization.”

Double Fine’ Lee Petty Talks Keeper and Creative Leadership (The AIAS Game Maker’s Notebook): “Trent Kusters chats with Lee Petty, Creative Director on Double Fine’s newest adventure, Keeper. Together they discuss where the idea to anthropomorphize a light house; why they avoided dialogue and how it pushed them creatively; how silence and emptiness shape emotional tone; the importance of restraint; and what he's learned about leadership throughout his journey at Double Fine.”

Ben Horowitz on Investing in AI: AI Bubbles, Economic Impact, and VC Acceleration (The a16z Show): “AI is changing how companies are built and how venture firms operate, forcing faster decisions, clearer judgment, and new ways of working. In this exclusive conversation, Ben Horowitz shares how Andreessen Horowitz adapts to that shift. He explains why managing GPs is different from running a company, how investors are evaluated at the moment of decision rather than years later, and why verticalized teams help the firm scale without internal politics. Ben also breaks down the current AI cycle, from treating AI as a new computing platform to why application design and model orchestration matter more than raw model size. He discusses the return of M&A and why today’s AI market reflects real demand, not just inflated valuations.”

How Cure: A Hospital Simulator Aims to Snare Content Creators Through Some Clever Twitch Integration (gamesindustry.biz): “Discoverability is one of the toughest problems facing the games industry, particularly if you're a tiny indie studio with barely any marketing budget. So Sentinel Games is designing with discoverability in mind — baking in some clever Twitch integration tools that it hopes will attract streamers, and hence give their game a handy bit of free promotion.”

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