Shams Jorjani, the chief executive of Arrowhead Game Studios—best known for Helldivers 2—recently told GamesIndustry.biz at Gamescom that the video‑game sector is undergoing a profound transformation. He argues that the assumptions and playbooks that guided developers and publishers throughout the 2010s have become obsolete, and that the industry now finds itself in a "transitional phase" where old formulas no longer guarantee success. Jorjani acknowledges that, despite occasional headlines of doom, the overall health of the market remains strong.
"The industry is doing fine," he says, "but the foundations on which we built our expectations have shifted dramatically. The strategies that worked from 2010 to 2020 simply don’t apply any longer.
The bottom line of every business case has been ripped out. Previously, we could predict a minimum sales figure for a title; now that number is effectively zero. That’s the reality we’re facing today." Several forces are 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 featured a parade of titles from Chinese and South Korean studios, underscoring how these markets are no longer peripheral but central to global game culture. "There’s been a steady rise of Asian games and companies entering the Western market for about a decade," Jorjani explains, "but now we’re seeing game after game from that region breaking through and capturing attention." China, in particular, appears to have reached a tipping point in terms of quality and ambition.
While the Chinese audience remains heavily mobile‑centric—a factor that influences design sensibilities—the pace of development is accelerating, and artificial intelligence is amplifying that speed. "AI is making the production pipeline faster everywhere," he notes, adding that the technology is helping studios churn out titles at an unprecedented rate. Artificial intelligence itself is a game‑changer that injects a high degree of uncertainty into the industry’s future. Jorjani points out that, unlike past hype cycles such as virtual reality, AI is not a fleeting trend but a structural shift.
He observes a stark cultural divide in how the West and the East approach the technology. In Western studios, debates revolve around ethics, data ownership, and artistic integrity, often slowing adoption.
In contrast, many Eastern developers seem largely indifferent to those concerns, focusing instead on practical implementation to produce functional code quickly. "Western developers are experiencing an existential crisis because they see games as art, whereas AI reduces them to software," Jorjani says.
"The West will be slower to adopt, but the change is inevitable." Beyond AI, another obstacle to long‑term planning is the sheer length of AAA development cycles. Creating a blockbuster can take five or six years and involve multiple teams spread across continents. This reality pushes publishers toward established franchises and away from risky new IPs, especially in Western markets.
"When development cycles are long, you need a very solid bet," Jorjani explains. "Brand recognition is the primary risk mitigant.
If players know what they’re getting, you can offset the uncertainty." He illustrates this with the phenomenon of “analysis paralysis.” With an ever‑growing flood of releases, consumers are overwhelmed. Familiar brands like Worms or Helldivers provide a shortcut: players instantly understand the experience they’re buying. Data from Steam Replay 2025 shows that roughly 44 % of playtime is spent on titles older than a year, indicating that gamers gravitate toward known quantities rather than untested newcomers. "People shout for fresh IPs, but they end up buying remakes or sequels," Jorjani observes.
This environment creates a strategic advantage for indie developers, who can validate concepts early and iterate rapidly. Jorjani cites Riot Games and Supercell as examples of companies that maintain multiple projects in parallel; when one hits big, the others fade into the background.
Indie studios, however, can surface a prototype, share a short GIF, and gauge community reaction almost instantly. He recalls the indie hit Tiny Glade, which exploded after early visual teasers went viral week after week.
"Early validation is the name of the game," he says. "If you can put something in front of players early and get positive feedback, you know you’re on the right track and can iterate quickly." Arrowhead is adopting this mindset for its next project. The studio plans to involve a select group of dedicated Helldivers fans from the outset, presenting them with early concepts and asking targeted questions about preferred themes and IPs. By segmenting the audience—identifying those who love aliens, for instance—they can fine‑tune the experience to a niche but passionate demographic before broader testing.
This approach mirrors mobile‑game studios that routinely run ad‑based concept tests to see which ideas resonate most. Jorjani concludes with a call to abandon the old playbook of secrecy and lengthy, untested development. "We need to get the game into players’ hands as soon as possible and listen," he says.
"Our philosophy is to craft experiences for a specific connoisseur, not for every action‑game fan. Early, focused feedback will let us hit that sweet spot without waiting years for a massive marketing push." In summary, the gaming landscape is being reshaped by longer development timelines, the rise of Asian talent, and the disruptive influence of AI. While these trends introduce volatility, they also open doors for smaller studios that can move swiftly, validate ideas early, and cater to well‑defined audiences. Arrowhead’s CEO believes that embracing these new dynamics—and shedding outdated assumptions—will be essential for thriving in the next era of interactive entertainment.