Shams Jorjani, the chief executive of Arrowhead Game Studios – the studio behind Helldivers 2 – told GamesIndustry.biz at Gamescom that the video‑game sector is undergoing a profound transition. He explained that the assumptions and playbooks that guided developers and publishers throughout the 2010s have lost their relevance in today’s fast‑changing market.
"Sometimes there’s a sense of doom and gloom, but overall the industry remains healthy," Jorjani said. "What’s different now is that the foundations of our old assumptions have been upended. The strategies that worked from 2010 to 2020 simply don’t cut it any longer.
The bottom line of every business case has been eroded. In the past we could estimate a minimum sales figure and plan around it; today you have to subtract that number to zero and start from scratch.
That’s the reality we face." He identified three major forces driving this upheaval. First, the steady rise of developers from the Asia‑Pacific region is reshaping the global landscape. This year’s Gamescom Opening Night Live, for example, highlighted the technical and creative capabilities of studios from China and South Korea, underscoring a trend that has been building for a decade but now appears in a steady stream of high‑quality releases. "Asian games and companies have been making inroads into the Western market for ten years," Jorjani observed.
"What we’re seeing now is a tipping point where game after game from that part of the world is breaking through and capturing attention." China, in particular, is reaching a new level of sophistication in its console and PC titles, even though its domestic market remains heavily mobile‑centric. Jorjani noted that the mobile‑first mindset influences design sensibilities, but the rapid pace of development—accelerated by artificial intelligence—means Chinese studios are delivering more ambitious experiences at an unprecedented speed. "The quality is definitely climbing," he said. "There’s still room to grow, but the sensibilities are shifting.
AI is a key catalyst, allowing developers to iterate faster and ship games more quickly across the globe." The second catalyst is AI itself. Jorjani argued that while past technologies such as virtual reality generated hype that eventually faded, AI represents a structural change that will reshape creation, production, and distribution.
He highlighted a cultural divide in how the technology is embraced: Western studios are wrestling with ethical questions, data‑ownership concerns, and artistic integrity, whereas many Eastern developers have adopted AI with little hesitation, focusing on practical outcomes. "In the West we ask whether it’s ethical, whether companies should be allowed to train on certain data, and whether we should oppose it on ideological grounds," he explained. "In the East, the conversation is almost non‑existent – they simply use AI because it works.
This mirrors what we see in other tech sectors, where teams have switched to AI‑driven workflows without moral qualms." Jorjani warned that this divergence could lead to an "existential crisis" for Western game creators, who must reconcile artistic ambition with software‑centric production pipelines. He predicts a slower uptake in the West, but ultimately expects AI to become an industry standard.
The third challenge is the length of development cycles for AAA titles. Large‑scale projects often require five to six years and coordination across multiple studios and time zones.
This prolonged timeline makes publishers risk‑averse; they lean on established franchises and recognizable brands to mitigate financial exposure. Jorjani illustrated how brand recognition reduces uncertainty: players know what to expect from a series like Worms, even if the new installment isn’t groundbreaking. He cited Steam data showing that roughly half of the games played on the platform are over 18 months old, indicating that gamers frequently return to older, familiar titles rather than splurging on untested IPs.
"People shout for fresh experiences, but their wallets often go to remakes or sequels," Jorjani said. In contrast, indie developers enjoy a strategic advantage because their development cycles are shorter and more flexible. Jorjani emphasized the importance of early validation – getting a prototype or even a simple GIF in front of players quickly and iterating based on feedback. He pointed to the success of Tiny Glade, an indie title that gained momentum after early visual teasers went viral.
"The secret sauce of any hit game is early validation," he asserted. "If you can show something to a real person and get a positive reaction, you know you’re on the right track and can iterate rapidly.
That’s the strength of software development, and it’s why indie studios can move faster than a four‑year AAA pipeline that waits until the final product to launch a massive marketing push." Arrowhead itself is adopting this approach for its next project. Jorjani explained that the studio plans to involve a small, highly targeted group of players early in the process, gathering detailed preferences about genres, themes, and IPs.
By testing concepts with a niche audience that aligns with the game’s intended demographic, Arrowhead hopes to refine its design before committing to a full‑scale production. "We’ll hand the early build to about a hundred Helldivers fans and ask them about their favorite games and settings," he said. "If they love aliens and enjoy Helldivers, we’ll know we’re hitting the right sweet spot. This early data lets us adjust direction long before a costly, multi‑year development cycle begins." Jorjani concluded that the industry must abandon the old playbook of keeping ideas hidden for years and then unveiling them with a big splash.
Instead, developers need to embrace transparency, rapid iteration, and community feedback to stay relevant in a market where AI, Asian competition, and shifting consumer habits are redefining success. In summary, the gaming landscape is being reshaped by three interlocking forces: the ascent of Asian studios, the disruptive potential of AI, and the inherent risk of long AAA development timelines.
While these trends create uncertainty for traditional publishers, they also open a window of opportunity for indie creators who can validate concepts early, iterate quickly, and connect directly with a passionate, niche audience. Arrowhead’s own strategy reflects this new reality, signaling that the future of game development will be less about adhering to outdated formulas and more about adaptive, community‑driven innovation.