Shams Jorjani, the chief executive of Arrowhead Game Studios—the studio behind Helldivers 2—recently told GamesIndustry.biz at Gamescom that the video‑game sector is undergoing a profound transitional period. He argued that the formulas and playbooks that guided developers and publishers throughout the 2010s have lost much of their relevance today.
"There have been moments of doom‑and‑gloom, but overall the industry remains healthy," Jorjani said. "What’s changed is that the foundations of our assumptions have been upended.
The strategies that worked between 2010 and 2020 simply don’t apply any longer. The bottom line has vanished from every business case you once relied on. No one could guarantee a title would sell a certain amount, and now that expected figure has essentially been reduced to zero.
That’s the reality we’re facing." He identified several key drivers behind this shift. First, the continued rise of developers in the Asia‑Pacific region is reshaping the global market. This year’s Gamescom Opening Night Live highlighted the capabilities of studios from China and South Korea, underscoring how Asian games are increasingly dominating Western storefronts. "For a decade there’s been a steady influx of Asian companies into the West, but now it’s become a steady stream—game after game after game—making a real impact," Jorjani explained.
He noted that Chinese developers, in particular, have reached a tipping point in terms of quality. While the Chinese market remains heavily mobile‑centric, that focus is accelerating development cycles and, in Jorjani’s view, is being amplified by artificial intelligence.
AI, he argued, is the most unpredictable variable on the horizon. Unlike previous hype cycles—such as virtual reality—AI is already altering how games are built and delivered. The adoption patterns differ sharply between regions.
In the West, developers grapple with ethical questions, data‑training rights, and artistic integrity, often debating whether AI should be used at all. In contrast, many Eastern studios appear less concerned with these moral debates, treating AI as a pragmatic tool to speed up production. "Western studios are experiencing an existential crisis because they see their craft turning into functional code," Jorjani said. "In the East, the mindset is more utilitarian—if it works, they adopt it without hesitation.
The West will be slower, but the shift is inevitable." Beyond technology, Jorjani highlighted the structural challenge of long development timelines for AAA titles. Creating a blockbuster can take five to six years and involve multiple teams spread across time zones. This reality pushes publishers toward established franchises and away from risky new IPs, especially in Western markets where the financial stakes are high. "When development cycles are lengthy, you need a very solid bet to justify the investment," he noted.
"Brand recognition is the primary risk mitigator. Players know what they’re getting with a familiar name, which reduces uncertainty." He pointed to the phenomenon of "analysis paralysis" caused by the sheer volume of new releases. While gamers might be intrigued by fresh announcements, they often gravitate toward recognizable series like Worms because the experience is predictable. Data from Steam Replay 2025 shows that roughly half of all playtime is spent on titles older than 18 months, indicating that players still favor proven games over untested concepts.
Jorjani cited companies such as Riot Games and Supercell as examples of studios that juggle multiple projects simultaneously, allowing one hit to carry the others. For indie developers, however, the landscape offers a distinct strategic advantage: the ability to validate ideas early and iterate quickly. "Early validation is the secret sauce," he asserted.
"If you can put something in front of an audience quickly and receive positive feedback, you know you’re on the right track. Indie teams often share GIFs or short videos; when those get a strong reaction, they can double down. In contrast, a four‑year AAA cycle forces you to wait until the product is finished before you can market it heavily." Arrowhead itself is adopting this agile approach for its next project.
Inspired by mobile‑gaming practices—where concepts are tested through ads and consumer response—Arrowhead plans to involve a select group of players early in development. Jorjani described a pilot where 100 dedicated Helldivers fans would evaluate early concepts, ranking their preferences for themes such as alien invasions versus other sci‑fi motifs. By comparing responses from this targeted cohort to a broader control group, the studio hopes to fine‑tune its design direction before committing extensive resources. "We want to make games for a specific connoisseur, not just any action fan," he explained.
"If our early testers love aliens and Helldivers, that signals we should double down on that niche. This data‑driven, early‑feedback loop replaces the old playbook of keeping everything secret for years and then unveiling a polished final product." In summary, Jorjani believes the industry’s assumptions have been fundamentally rewritten. The convergence of longer development cycles, the ascendancy of Asian developers, and the disruptive potential of AI demand new strategies.
While large studios lean on brand equity to hedge risk, indie creators can thrive by embracing rapid prototyping, community validation, and flexible development models. Arrowhead’s own shift toward early player involvement exemplifies how studios can adapt to the evolving landscape, ensuring they remain relevant in a market where the old rules no longer apply.