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 argued that the assumptions and playbooks that guided developers and publishers throughout the 2010s have lost their relevance in today’s rapidly shifting landscape. "There have been moments of pessimism, but overall the industry remains healthy," Jorjani said.
"What has changed fundamentally are the foundations on which we built our forecasts. The old formulas from 2010‑2020 simply don’t work any longer. The bottom line has disappeared from every business case you once relied on. No one could guarantee a title’s sales, yet they would still plug in a target figure.
Take that figure and subtract everything – that’s the new reality." He identified several forces driving this upheaval. One of the most visible is the continued ascent of developers from the Asia‑Pacific region. This year’s Gamescom Opening Night Live highlighted the technical and creative capabilities of studios from China and South Korea, underscoring a trend that has been gathering momentum for roughly a decade.
"Asian games and companies have been making steady inroads into Western markets for ten years, and now we’re seeing a steady stream of titles that are genuinely competitive," Jorjani explained. China, in particular, appears to have reached a tipping point in terms of production quality. While the Chinese market remains heavily mobile‑centric – a factor that shapes design sensibilities – the speed at which new games are released is accelerating, a development Jorjani attributes in part to artificial intelligence. "AI is pushing the entire pipeline faster, allowing studios to iterate and ship more quickly," he noted.
Artificial intelligence, according to Jorjani, introduces a level of uncertainty that makes long‑term predictions especially difficult. He contrasted the cultural attitudes toward AI in the West and the East. In Western studios, debates revolve around ethics, data ownership, and artistic integrity. In many Eastern firms, the conversation is more pragmatic: if AI can produce functional code, it will be adopted without moral hesitation.
"Western developers are experiencing an existential dilemma – they are artists who must reconcile creativity with a tool that can automate large parts of the process," he said. "The East, however, is moving ahead with fewer reservations, treating AI as just another piece of software." Beyond AI, Jorjani highlighted the structural challenge of lengthy development cycles for AAA titles.
Projects that take five or six years to complete demand large, distributed teams and substantial financial risk. This reality has nudged many Western publishers toward established franchises and away from risky new IPs. "When development times are long, you need a safety net.
Brand recognition is that safety net," he asserted. "Players know what to expect from a familiar name, which mitigates the gamble of a multi‑year investment." He pointed out that the sheer volume of releases creates analysis paralysis for consumers.
With dozens of announcements each week, gamers gravitate toward recognizable names. Data from Steam Replay 2025 shows that roughly 44 % of playtime is spent on games that are between one and seven years old, indicating a preference for proven titles over fresh, untested concepts. "People shout for new IPs, yet they spend most of their money on remakes or sequels," Jorjani observed.
This environment, however, offers a strategic edge for indie developers. Jorjani cited Riot Games and Supercell as examples of companies that juggle multiple projects, where a single breakout hit can eclipse the rest of the slate.
Indie studios, with their shorter cycles and willingness to share early builds, can validate ideas quickly. "Early validation is the secret sauce," he said. "If you can put a prototype or even a GIF in front of players and receive positive feedback, you know you’re on the right track and can iterate rapidly." Arrowhead itself is applying this philosophy to its next venture. Inspired by mobile‑gaming practices, the studio plans to expose concepts to consumers early, often through short ads or teaser clips, and measure which resonate.
Jorjani described a concrete plan: the team will give a select group of 100 Helldivers veterans a prototype, ask them about their favorite genres and IPs, and compare responses against a control group. If the test group shows strong affinity for alien‑themed content, the studio will double‑down on that direction. He emphasized that this approach requires abandoning the old habit of keeping development hidden for years before a big marketing push.
"We have to let go of the traditional playbook of secrecy and instead embrace transparency and rapid feedback," Jorjani concluded. In summary, the gaming industry’s landscape has been reshaped by longer development timelines, the rise of Asian studios, and disruptive technologies like AI. While these forces make long‑range forecasting challenging, they also create opportunities for smaller, more agile developers who can iterate quickly and engage directly with their audience.
Arrowhead’s shift toward early validation reflects a broader industry move toward flexibility, data‑driven decision‑making, and a willingness to experiment beyond the comfort of established franchises.