Shams Jorjani, the chief executive of Arrowhead Game Studios—the studio behind Helldivers 2—recently described the current state of the video‑game sector as a "transitional phase." In an interview with GamesIndustry.biz conducted at Gamescom, Jorjani argued that the formulas that guided developers and publishers throughout the 2010s have largely lost their efficacy today. "There have been moments of doom‑and‑gloom, but overall the industry is healthy," he remarked.
"What has changed is the foundation of the assumptions we built our strategies on. The playbooks that served us from 2010 to 2020 simply don’t work any longer. The bottom line has evaporated from every business case we once trusted. No one could guarantee a title’s sales, but they would still assume a certain baseline.
Take that baseline away, and you’re left with the stark reality that we now face." Jorjani identified several forces driving this shift. One of the most visible is the continued rise of developers in the Asia‑Pacific region.
This year’s Gamescom Opening Night Live, for instance, highlighted the capabilities of studios from China and South Korea, underscoring how Asian games are increasingly dominating Western conversations. "For a decade there’s been a steady influx of Asian games and companies into the Western market," Jorjani explained.
"What’s different now is the sheer volume—game after game after game is breaking through and capturing attention." China, in particular, appears to have reached a tipping point in terms of the quality and ambition of its output. While the Chinese market remains heavily mobile‑centric—a factor that influences design sensibilities—developers are accelerating their pipelines, and Jorjani believes artificial intelligence is a key catalyst. "The Chinese scene is definitely picking up," he said. "There’s still a journey ahead, but the sensibilities are evolving faster.
AI is speeding that evolution because more titles are being produced at a breakneck pace across the globe." Artificial intelligence, according to Jorjani, adds a layer of unpredictability that makes it difficult to forecast the industry’s trajectory over the next five to ten years. He contrasted the way AI is being embraced in the East versus the West. In Western markets, debates about ethics, data usage, and artistic integrity dominate the conversation, often slowing adoption.
In contrast, many Eastern studios appear to adopt AI with little moral hesitation, focusing primarily on functionality and efficiency. "In the West we’re asking if AI is ethical, whether companies should be allowed to train on certain data, and if it threatens artistic values," Jorjani observed. "In the East, there’s virtually no concern—developers just use it because it works. It’s similar to what we see in the broader IT industry, where teams have switched to AI‑driven workflows without much moral qualm." He noted that this cultural divide could lead to an "existential crisis" for Western creators, who view games as artistic expressions rather than merely functional software.
Nonetheless, he expects the West will eventually catch up, albeit at a slower pace. Beyond AI, Jorjani highlighted the challenges posed by the long development cycles typical of AAA titles. Projects that demand five or six years of work, multiple teams, and coordination across time zones create a risk‑averse environment.
Publishers therefore lean heavily on established franchises and recognizable brands to mitigate uncertainty. "Development cycles remain lengthy," he said.
"When you know that and the market is shifting, you have to be absolutely sure your bet will pay off. Brand recognition is the primary risk reducer.
Players know what they’re getting with a familiar name, which cushions the gamble." He illustrated this point with the phenomenon of "analysis paralysis"—the overwhelming flood of new releases that makes it hard for consumers to decide where to spend their time and money. A well‑known series like Worms offers instant familiarity, whereas a brand‑new IP must earn trust from scratch. Data from Steam Replay 2025 showed that roughly 44 % of playtime was devoted to games released between one and seven years ago, indicating a strong preference for established titles.
Jorjani also referenced companies such as Riot Games and Supercell, which often juggle multiple projects simultaneously. When one title becomes a breakout hit, the others can fade into obscurity, a dynamic that indie developers can exploit. "The secret sauce for any successful game is early validation," he asserted. "The sooner you can show something to a player and receive positive feedback, the clearer your direction becomes.
This is a strength of the indie model, where development cycles are shorter and teams are more transparent. A single GIF that goes viral can confirm you’re on the right track, whereas a four‑year AAA cycle forces you to wait until the very end before you can gauge audience reaction." Arrowhead itself is adopting this rapid‑feedback approach for its next project. Inspired by mobile‑gaming practices—where concepts are tested through ad performance before full production—Arrowhead plans to place early prototypes directly into the hands of a select group of players.
"We’ll give the game to about a hundred Helldivers fans right away and ask them about their favorite IPs and genres," Jorjani explained. "If they love aliens and enjoy Helldivers, we know we’re hitting the right niche. If they like the game but their favorite isn’t alien‑themed, that tells us we need to adjust.
This early, targeted testing is far more valuable than a massive marketing push two years down the line." He concluded by emphasizing the need to abandon outdated playbooks that keep projects hidden for years before a grand reveal. Instead, the industry must embrace transparency, rapid iteration, and community‑driven validation to thrive in an environment where assumptions are constantly being rewritten.
In summary, Jorjani believes the gaming landscape is being reshaped by three interlocking trends: the ascendancy of Asian developers, the disruptive potential of AI, and the growing advantage of indie studios that can iterate quickly and validate concepts early. While the future remains uncertain, those who adapt their strategies to these new realities will be best positioned to succeed.