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 transition. He explained that the formulas that guided developers and publishers throughout the 2010s have largely lost their effectiveness in today’s market. "There have been moments of pessimism, but overall the industry remains healthy," Jorjani remarked.
"What’s changed is that the foundations of our assumptions have been rewritten. The playbooks that served us from 2010 to 2020 simply don’t apply any longer.
The bottom line of every business case has been stripped away. No one could guarantee a title’s sales, yet they would still project a minimum figure. Take that number, subtract the zero, and you get the new reality." He identified several forces driving this shift. One of the most visible is the continued ascent of developers from the Asia‑Pacific region.
This year’s Gamescom Opening Night Live, for example, highlighted the impressive capabilities of studios from China and South Korea, underscoring a broader trend of Asian games breaking into Western markets. "For a decade there’s been a steady rise of Asian companies entering the West," Jorjani said.
"Now it’s reached a point where game after game from that region is making a real impact." China, in particular, appears to have arrived at a tipping point in terms of quality. While the Chinese market remains heavily mobile‑centric—a factor that shapes design sensibilities—its developers are accelerating production, a trend Jorjani attributes in part to artificial intelligence. "The quality is definitely improving," he noted. "There’s still a journey ahead, but the sensibilities are evolving.
Mobile dominance colors the approach, yet AI is speeding everything up, allowing more titles to be released at a faster pace worldwide." Artificial intelligence, according to Jorjani, is the most disruptive technological development the industry has seen in recent years. Unlike previous hype cycles such as virtual reality, AI is already reshaping creation pipelines, marketing, and even player interaction, making long‑term forecasting extremely uncertain. "AI is transformative in a completely different way," he explained. "What’s also fascinating is the contrast between East and West in how we adopt it.
In the West, we’re debating ethics, data‑training rights, and artistic integrity. In the East, there’s far less hesitation—developers simply integrate AI because it works. It’s akin to what we see in the broader IT sector: everyone has switched to AI‑assisted coding without moral qualms, because the end product is functional software, not an artistic experience." He added that Western developers are experiencing an "existential crisis" as they grapple with the balance between artistic expression and the efficiency AI offers. While the West may adopt AI more slowly, Jorjani is confident the technology will eventually become ubiquitous.
Beyond AI, another challenge for planning the industry’s future lies in the length of development cycles for AAA titles. Large‑scale projects often span five to six years and involve multiple teams across different time zones. This extended timeline pushes publishers toward established franchises and away from risky new intellectual properties, especially in Western markets.
"Multiple forces are at play," Jorjani said. "Development cycles remain long, and when the market is shifting, you need a very solid bet.
Brand recognition is the primary risk mitigator. If players know what they’re getting, you can offset uncertainty." He illustrated this with the example of classic series like Worms. Even if a new Worms entry isn’t groundbreaking, its familiar brand gives publishers confidence because players already understand the experience. Data from Steam Replay 2025 supports this: roughly 44 % of user playtime was spent on titles between one and seven years old, and half of all games played on the platform are older than 18 months.
Despite vocal demand for fresh IP, consumers often gravitate toward remakes and sequels. Jorjani cited companies such as Riot Games and Supercell, which maintain a portfolio of projects where one breakout hit can eclipse the others. In contrast, indie developers enjoy a strategic advantage because they can validate concepts early and iterate quickly. "Early validation is the secret sauce for any successful game," he asserted.
"The sooner you put something in front of players and receive positive feedback, the more confidence you have to iterate. Indie teams excel at this because their cycles are short and they share progress openly—posting a GIF, watching the community react, and adjusting accordingly." He recalled the indie title Tiny Glade, which gained momentum after early GIFs went viral week after week. By contrast, a four‑year AAA cycle that waits until the final product to launch a massive marketing push lacks that nimbleness.
Arrowhead is adopting this early‑feedback mindset for its next project. Jorjani explained that the studio is borrowing tactics from mobile developers, who often test concepts via ads to see which resonate before committing full resources. "We’ll put the game in players’ hands as soon as possible," he said.
"Our philosophy has always been to create experiences for a specific type of connoisseur, not just any action‑game fan. We might give the prototype to a hundred Helldivers veterans, ask them about their favorite IPs, and see how they react to alien themes. If that group rates the game higher than a control group that loves Helldivers but not aliens, we know we’re hitting the right niche. Doing this early—rather than waiting two years for broad testing—gives us a decisive edge." Jorjani concluded by emphasizing the need to abandon the old playbook of keeping development secret for years and then unveiling a polished product in a spectacular launch.
Instead, continuous, transparent engagement with a targeted audience is becoming the new norm. In summary, the industry’s landscape has been reshaped by longer development timelines, the rise of high‑quality Asian studios, and the disruptive influence of AI. While these forces introduce uncertainty, they also open opportunities for smaller, agile developers who can test, learn, and adapt rapidly.
Arrowhead’s own strategy reflects this shift, focusing on early validation, niche targeting, and a willingness to let go of outdated, secrecy‑driven development practices.