Horror is big business

Horror projects can now achieve blockbuster-level success with significantly lower budgets, altering production and investment strategies across media.

The survival horror video game franchise Resident Evil is experiencing a resurgence, with its latest installment, Resident Evil Requiem, selling 8 million copies and becoming Capcom's 14th best-selling game. Concurrently, a reboot of the Resident Evil film series is poised to be the franchise's highest-grossing movie. This renewed interest has boosted sales across multiple Resident Evil titles. This phenomenon reflects a broader trend where the horror genre, once niche, is now a dominant force in entertainment across games, film, and streaming. Low production costs combined with significant returns on investment, exemplified by films like "Backrooms" and "Obsession" grossing nearly $1 billion on modest budgets, are driving this expansion. Major streaming services are also heavily investing in horror series during "spooky season," featuring star power and significant productions. Independent horror games and viral online content are increasingly fueling both the game and film industries, with significant viewership hours dedicated to horror content on platforms like Twitch.

The convergence of viral online content, indie game development, and streaming platforms has propelled horror from a niche genre to a dominant market force. This ascent is characterized by a "virtuous cycle" where success in one medium, like Capcom's Resident Evil games, drives interest and sales in others, including film and merchandise. The genre's inherent lower production costs, coupled with its demonstrated ability to generate massive returns on investment, are making it increasingly attractive to studios, streamers, and publishers seeking high-potential, lower-risk ventures. This shift is evident in the surge of low-budget, high-grossing films and the strategic acquisition of internet-driven horror IPs by major entertainment companies.

Looking ahead, the industry is witnessing increased risk-taking and a proliferation of horror content across all platforms, from tentpole streaming series to ambitious video game adaptations and original films. This sustained investment signals a fundamental re-evaluation of the genre's commercial viability, moving it firmly into the mainstream. The focus on cost-effective production and leveraging online communities suggests that horror will continue to evolve with an emphasis on novelty and unexpected narratives, potentially retaining its capacity for creative experimentation even as it explodes in popularity.