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 transition. He argued that the formulas that guided developers and publishers throughout the 2010s have lost their effectiveness in today’s market. "There have been moments of pessimism, but overall the industry remains healthy," Jorjani explained.
"What’s changed is that the foundations of our assumptions have been upended. The playbooks that served us from 2010 to 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’s sales, yet they would assume a minimum figure. Take that number and subtract everything—now you’re left with reality." He identified several forces driving this shift. One major factor 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 companies are increasingly shaping the global market.
"Asian games and companies have been making steady inroads into the West for the past decade," Jorjani said. "Now we’re seeing a relentless stream of titles from that region that are genuinely competitive." China, in particular, appears to have reached a tipping point in terms of production quality. While the Chinese market remains heavily mobile‑centric—a characteristic that influences design sensibilities—Jorjani believes the rapid pace of development there is being accelerated by artificial intelligence.
"The quality is definitely rising," he noted. "There’s still a journey ahead, but the sensibilities differ because the audience is primarily mobile. AI is speeding everything up, so games are emerging faster than ever across the globe." AI, according to Jorjani, adds a layer of unpredictability that makes forecasting the next five or ten years especially challenging. He contrasted the differing attitudes toward AI in the East and West.
In Western markets, developers wrestle with ethical concerns, data‑training permissions, and artistic integrity. In contrast, many Eastern studios have embraced AI with little hesitation, focusing on functionality over philosophical debate.
"In the West, we’re asking if AI is ethical, whether companies should be allowed to train on certain data, and if we should oppose it on ideological or artistic grounds," he said. "In the East, there’s almost no moral qualm—if it works, they use it.
This mirrors what I see among my friends in IT: everyone has switched to AI without major reservations because, at the end of the day, you’re writing functional code, not creating a human connection." He added that Western developers are experiencing an "existential crisis" as AI blurs the line between artistic creation and software engineering. While the West may adopt AI more slowly, Jorjani is confident the technology will eventually become mainstream.
Beyond AI, the lengthy development timelines for AAA titles present another obstacle to strategic planning. Large‑scale projects often require five to six years and coordination across multiple continents, which has pushed many Western publishers to lean on established franchises rather than invest heavily in new intellectual property. "Several forces are at play simultaneously," Jorjani observed. "Development cycles remain long, and if the market is shifting, you need a very solid bet.
Brand recognition is the primary risk mitigator. When you see a flood of new releases, players experience analysis paralysis. A familiar name—like Worms—offers a known experience, even if it’s not groundbreaking." He cited data from Steam Replay 2025, which showed that 44 % of user playtime was spent on games between one and seven years old, indicating that players gravitate toward titles with an established track record.
While there is vocal demand for fresh IPs, actual purchasing behavior tends to favor remakes and sequels. Jorjani pointed to companies such as Riot Games and Supercell, which often juggle multiple projects simultaneously. When one title becomes a hit, the others fade into the background.
This dynamic, he argued, gives indie developers a strategic edge because they can iterate quickly and validate concepts early. "The secret sauce for any successful game is early validation," he said. "The sooner you show something to an audience and receive positive feedback, the better you can iterate. Indie studios excel at this because their cycles are shorter and they share progress openly—posting a GIF, for example, and watching the community’s reaction." He recounted the rise of Tiny Glade, an indie hit that gained momentum after early teaser GIFs went viral week after week.
In contrast, a four‑year AAA development cycle that waits until the final product to launch a massive marketing push lacks that iterative feedback loop. Arrowhead is adopting this indie‑style approach for its upcoming project. Inspired by mobile developers who test concepts through ads and track performance, the studio plans to place early builds directly into the hands of a select group of players.
"We’ll give a prototype to about a hundred Helldivers fans and ask them about their favorite IPs and games," Jorjani explained. "If they love aliens, enjoy Helldivers, and respond positively to our prototype, we’ll know we’re hitting the right niche. This early testing happens months, not years, into development, allowing us to pivot quickly." He concluded by emphasizing the need to abandon the old playbook of keeping a project under wraps for years before a big reveal.
Instead, continuous engagement and rapid feedback are becoming the new norm, especially for studios that want to stay relevant in an industry where assumptions are constantly being rewritten.