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 explained that the assumptions and playbooks that guided developers and publishers throughout the 2010s have lost their relevance in today’s rapidly evolving market. "Sometimes there’s been doom and gloom, but overall the games industry is doing well," Jorjani said. "It’s just that the things we based our assumptions on have changed fundamentally.
The playbooks used from 2010 to 2020 no longer work. The bottom has fallen out of every business case you had.
No one knew how well a game would sell, but they assumed it would sell at least this much. Whatever that number was, take a zero away.
And that’s the reality." He identified several forces driving this shift. First, the continued ascent of developers from the Asia‑Pacific region has reshaped the competitive landscape. The Opening Night Live showcase at this year’s Gamescom highlighted the growing capabilities of studios from China and South Korea, underscoring that Asian games are no longer niche imports but mainstream contenders. "There’s always been a general rise of Asian games and companies into the West," Jorjani observed.
"That’s been ongoing for the last ten years, but now it’s reached a point where it’s game after game after game that’s really making it." China, in particular, appears to have arrived at a tipping point in terms of quality and ambition. While the Chinese market remains heavily mobile‑centric—a factor that influences design sensibilities—developers are increasingly delivering experiences that rival traditional console titles. Jorjani noted, "It is definitely picking up for sure.
I think there’s still a way to go, but there are very different sensibilities to what makes the games tick as well. The Chinese audience is still primarily mobile‑driven.
That flavours the sensibilities, but it’s going faster. I think AI is accelerating this because more and more games are coming out faster and faster everywhere." Artificial intelligence, he argued, is the most disruptive technology the industry has seen in recent memory.
Unlike previous hype cycles such as virtual reality, AI is already being woven into production pipelines, asset creation, and even design iteration. However, its adoption varies dramatically between East and West. In Western markets, developers grapple with ethical questions, data‑usage rights, and artistic integrity, often debating whether AI‑generated content aligns with creative values. In contrast, many Eastern studios appear less concerned with these debates, embracing AI as a pragmatic tool to accelerate development.
Jorjani likened the divide to conversations he’s heard among IT professionals: "Everyone’s shifted over to using AI completely and without any major moral kind of, not even qualms, but it’s just because, at the end of the day, if you’re making functional code, you’re not making entertainment where you’re trying to connect with other humans." He warned that the West may experience an "existential crisis" as AI blurs the line between artistic expression and software engineering. Yet he remains confident that adoption will inevitably rise, albeit at a slower pace. "The West will be slower on the uptake, but the uptake will still happen," he said.
Beyond technology, Jorjani highlighted the structural challenge of long development cycles for AAA titles. Creating a blockbuster can take five to six years, often involving multiple studios across different time zones. This lengthy horizon makes investors wary, prompting many publishers to lean on established franchises rather than gamble on new IP. "If you know that development cycles are still long and the market is changing, you need to be very certain that the bet you’re taking works," he explained.
Brand recognition, he argued, is the primary risk mitigant. A familiar name like Worms or Helldivers provides a safety net because players know what to expect, even if the game isn’t groundbreaking.
Data supports this cautious consumer behavior. Steam’s 2025 replay report showed that roughly 44 % of playtime was spent on titles between one and seven years old, and half of all games played on the platform were over 18 months old. While gamers vocalize a desire for fresh experiences, purchasing patterns still favor remakes, sequels, and proven franchises.
Arrowhead’s own success with Helldivers illustrates how a combination of luck, distinctive design, and strong brand identity can break through the noise. Jorjani pointed to companies like Riot Games and Supercell as examples of studios that juggle multiple projects simultaneously, allowing one hit to subsidize the others.
This model, however, is not easily replicated by smaller teams with limited resources. Here, indie developers possess a strategic advantage: they can validate concepts early and iterate rapidly.
"The secret sauce to any successful game is early validation," Jorjani asserted. He described how indie teams often share a GIF or short video clip, gauge community reaction, and adjust direction based on that feedback. This agile loop contrasts sharply with the four‑year, closed‑door development cycles typical of many AAA pipelines. Arrowhead is applying this philosophy to its next project.
Inspired by mobile‑gaming practices, the studio plans to expose early prototypes to a targeted group of players, gather granular feedback, and refine the experience before committing to full production. Jorjani explained, "We’ll probably put the game in the hands of 100 Helldivers players, and then we’ll ask them what their favourite IPs or games are. If they’re interested in aliens, like Helldivers, and they enjoy the prototype, we know we should score the game higher than a control group that likes Helldivers but not aliens. That will allow us to know that we’re able to hit that specific group, and we should do this now, early into development rather than waiting two years after getting broad user tests." This approach demands abandoning the old playbook of secrecy and massive, late‑stage marketing pushes.
Instead, Arrowhead aims to iterate openly, letting player data drive design decisions from day one. Jorjani concluded, "But it requires you to let go of that old playbook of playing your cards close to the chest for years, and then dazzle and razzle." In summary, the gaming industry today is defined by three intersecting trends: the rise of Asian studios delivering high‑quality titles, the disruptive influence of AI on creation and ethics, and the growing importance of early, community‑driven validation—especially for indie developers. While long development cycles and brand reliance continue to shape AAA strategies, the flexibility and rapid feedback loops of smaller teams may become the primary engine of innovation as the market continues to evolve.