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 playbooks that guided developers and publishers throughout the 2010s have largely lost their relevance in today’s market. "There have been moments of pessimism, but overall the industry is healthy," Jorjani explained.
"What’s changed is the foundation of the assumptions we built our business cases on. The formulas that worked from 2010 to 2020 simply don’t apply any longer.
The bottom line has vanished from every model you once trusted. No one could guarantee a title’s sales, but they would still assume a minimum figure.
Now you have to subtract that number entirely—that’s the new reality." He identified several forces driving this shift. First, the continued rise of developers in the Asia‑Pacific region is reshaping the global landscape. This year’s Gamescom Opening Night Live, for example, highlighted the growing capabilities of studios from China and South Korea.
"Asian developers have been gaining ground in the West for a decade," Jorjani said, "but now we’re seeing a steady stream of high‑quality releases from that region, game after game." China, in particular, appears to have reached a tipping point in terms of production quality. Jorjani noted that while the Chinese market remains heavily mobile‑centric—an orientation that influences design sensibilities—the overall pace of development is accelerating, a trend he attributes in part to artificial intelligence. "AI is speeding everything up, allowing more games to be produced at a faster clip across the globe," he observed.
Artificial intelligence, according to Jorjani, introduces a level of uncertainty that makes long‑term forecasting especially difficult. He contrasted the West’s cautious, ethically‑focused approach with the East’s pragmatic embrace of the technology. In the West, developers grapple with questions about data usage, moral implications, and artistic integrity. In contrast, many Asian studios appear to adopt AI without hesitation, treating it as a functional tool rather than a philosophical dilemma.
"Western studios are experiencing an existential crisis because they see game creation as an artistic act, whereas AI reduces it to code execution," Jorjani said. "The East will adopt AI more quickly, but the West will eventually catch up." Beyond AI, another major challenge is the length of development cycles for AAA titles. Projects that demand five or six years of work and coordination across multiple time zones are increasingly risky in a market that is rapidly evolving. This risk aversion has led Western publishers to lean on established franchises rather than invest heavily in new intellectual property.
"When you have a long development horizon and a shifting market, you need a brand that players already recognize to mitigate risk," Jorjani explained. "A familiar name like Worms gives you a safety net, even if the new entry isn’t groundbreaking." He cited data from Steam Replay 2025, which showed that roughly 44 % of player hours were spent on games that were between one and seven years old, underscoring the tendency of gamers to gravitate toward familiar titles rather than untested newcomers. While there is vocal demand for fresh IP, actual purchasing behavior often favors remakes and sequels.
Arrowhead’s own success with Helldivers was, Jorjani admitted, partly a matter of luck combined with a distinctive design "secret sauce" that made the game instantly recognizable. Jorjani also highlighted how companies such as Riot Games and Supercell manage portfolios of multiple projects, allowing a single hit to eclipse the others. This environment, he argued, creates a strategic advantage for indie developers, who can move faster and validate concepts early. "The key to any successful game is early validation," he said.
"If you can show a prototype or even a short GIF to players and receive positive feedback, you know you’re on the right track and can iterate quickly." Indie studios often share progress openly, posting short clips that generate community buzz. Jorjani recalled Tiny Glade’s rapid rise after early GIFs went viral week after week. In contrast, a four‑year AAA cycle forces studios to wait until the product is finished before launching a massive marketing push, which can be a costly gamble.
Arrowhead plans to adopt the indie‑style validation for its next project. Jorjani described a process where a small, carefully selected group of Helldivers fans will receive early builds and be surveyed about their preferences.
By targeting a niche audience—players who love aliens, enjoy Helldivers, and fit a specific demographic—the studio hopes to gauge whether the new game resonates with its core market before expanding testing. "We’ll put the game in the hands of 100 dedicated players, ask them about their favorite IPs, and compare their reactions to a control group," he said. "If the alien‑loving segment rates it higher, we know we’ve hit the sweet spot." This approach mirrors tactics used by mobile developers, who routinely test concepts through ads and retain only the most promising ideas.
Jorjani emphasized that such early, data‑driven feedback loops require abandoning the old playbook of secrecy and long‑term hype. "You have to let go of the tradition of keeping everything under wraps for years and then unveiling a polished product," he concluded. "Instead, you iterate openly, learn fast, and let the community help shape the final experience."