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 emphasized that the formulas and assumptions that guided developers and publishers throughout the 2010s have largely lost their relevance today. "There have been moments of pessimism, but overall the industry remains healthy," Jorjani remarked.
"What’s changed is that the foundations of our expectations have been upended. The playbooks that served us from 2010 to 2020 simply don’t work any longer.
Every business case that once seemed solid now has a hole in its bottom line. In the past we could estimate a minimum sales figure for a title; now you have to subtract that number entirely. That’s the new reality." He identified several forces driving this upheaval.
One of the most visible is the continued rise of developers from the Asia‑Pacific region. This year’s Gamescom Opening Night Live highlighted the capabilities of studios from China and South Korea, underscoring a trend that Jorjani says has been building for a decade but is now reaching a critical mass. "Asian games and companies have been gaining traction in the West for ten years, and now we’re seeing game after game break through," he explained. "China, in particular, has hit a tipping point in terms of quality.
While the Chinese market is still heavily mobile‑centric, that focus is accelerating development speed, especially as AI tools enable faster iteration and content creation." Artificial intelligence, Jorjani argued, is perhaps the most disruptive technology the industry has faced in recent memory. Unlike past hype cycles—such as virtual reality—AI is delivering tangible changes that are reshaping production pipelines, design processes, and even market dynamics. He noted a stark cultural divide in how the technology is embraced across regions. "In the West we’re wrestling with ethical questions: should companies train on certain data sets, is it artistically acceptable, do we need regulation?" Jorjani said.
"In the East, there’s far less hesitation. Developers there have largely adopted AI without moral qualms, treating it as a practical tool to generate functional code and assets. This difference creates an asymmetry: Western studios may experience an existential crisis as artists wonder how to preserve a human touch, while Eastern studios push ahead, leveraging AI for speed and volume." Beyond technology, Jorjani highlighted the structural challenge of long development timelines for AAA titles. Projects that span five or six years require coordinated effort across multiple continents, making publishers wary of investing in untested intellectual property.
Consequently, many Western publishers lean on established franchises to mitigate risk. "When development cycles are lengthy, you need a safety net. Brand recognition becomes the primary risk‑reducer," he said. "If you launch a new Worms sequel, players already know what to expect, even if the game isn’t groundbreaking.
Data shows that a significant portion of Steam activity—about 44 % of playtime in 2025—still comes from titles older than a year, let alone new releases. People vocalize a desire for fresh IPs, yet they end up buying remakes or sequels." Jorjani pointed to companies such as Riot Games and Supercell as examples of studios that juggle multiple projects simultaneously, allowing a single hit to subsidize the others. He believes indie developers possess a strategic advantage in this environment because they can validate concepts early and iterate rapidly. "The secret sauce of any successful game is early validation," he asserted.
"If you can put a prototype or even a short GIF in front of players and receive positive feedback, you know you’re on the right track. Indie teams often share early builds openly, gauge community reaction, and adjust accordingly. Compare that with a four‑year AAA cycle where you wait until the product is finished before any major marketing push.
The indie model is far more agile." Arrowhead itself is adopting this approach for its next project. Inspired by mobile‑gaming practices, the studio plans to expose early concepts to a curated group of players and measure their preferences. Jorjani described a test where a hundred Helldivers enthusiasts would be asked about their favorite IPs and genres. If the cohort shows a strong affinity for alien‑themed shooters, the team can prioritize those elements, rather than waiting for broad, post‑launch analytics.
"We want to serve a specific connoisseur, not just any action‑game fan," he explained. "By getting the game into the hands of a targeted audience early, we can refine the experience before committing to a full‑scale launch. It means abandoning the old playbook of keeping the product under wraps for years and then unveiling it with a massive splash." In summary, Jorjani believes the gaming landscape is being reshaped by three intertwined trends: the ascent of Asian developers, the transformative impact of AI, and the persistent risk associated with long‑term AAA development.
While these forces create uncertainty for large studios, they also open doors for smaller, more nimble indie teams that can iterate quickly, validate early, and connect directly with niche audiences. Arrowhead’s own shift toward early player feedback exemplifies how a studio can adapt its strategy to thrive amid the industry’s rapid evolution.