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 tactics and assumptions 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 remains healthy," Jorjani remarked. "What has changed is the foundation of our expectations.
The playbooks that served us from 2010 to 2020 simply don’t apply any longer. The bottom line of every traditional business case has evaporated.
In the past we could make a rough estimate of a title’s sales and feel confident about that figure. Today you have to subtract that estimate to zero—that’s the new reality." He identified several drivers behind this upheaval.
One of the most visible is the continued rise of development studios in the Asia‑Pacific region. The opening night showcase at this year’s Gamescom highlighted the capabilities of Chinese and South Korean teams, underscoring how Asian developers have moved from peripheral participants to central contributors in the global market. "For a decade we’ve seen a gradual increase in Asian games reaching Western audiences," Jorjani said.
"Now it’s a steady stream—game after game—showcasing world‑class quality." China, in particular, appears to have reached a tipping point. While the Chinese market remains heavily mobile‑centric, that focus has cultivated a distinct design sensibility that is accelerating, especially as artificial intelligence tools streamline production pipelines. "The quality is definitely improving," he noted. "There’s still room to grow, but the sensibilities are shifting faster.
AI is a catalyst, allowing more titles to be produced at a rapid pace across the globe." Artificial intelligence, Jorjani argued, is the most disruptive technology the industry has faced since the advent of virtual reality. Unlike previous hype cycles, AI is reshaping development, art creation, and even business models, creating a level of uncertainty about what the next five or ten years will look like. He contrasted the cultural attitudes toward AI in the West and the East. In Western studios, debates about ethics, data ownership, and artistic integrity dominate the conversation.
In contrast, many Eastern developers appear to adopt AI pragmatically, focusing on functionality rather than philosophical concerns. "In the West we’re wrestling with whether AI is ethical, whether companies should be allowed to train on certain data, and whether it threatens artistic expression," Jorjani explained.
"In the East, there’s far less hesitation—developers simply use the tools that get the job done. This reflects a broader difference: Western creators often see games as an artistic medium that connects people, whereas others treat them as functional software." He acknowledged that this divergence could lead to a slower uptake of AI in Western studios, but he expects eventual convergence as the competitive pressure mounts. Beyond technology, Jorjani highlighted the structural challenge of long development cycles for AAA titles.
Projects that span five to six years require coordination across multiple teams and time zones, making publishers wary of investing in unproven IPs. Consequently, many Western publishers have leaned on established franchises to mitigate risk. "Development timelines remain extensive," he said.
"When you combine that with a rapidly shifting market, you need a very solid bet. Brand recognition is the primary risk reducer. Players know what they’re getting with a familiar name, which helps offset uncertainty." He pointed to the phenomenon of “analysis paralysis” among consumers, who are bombarded with a constant flood of new releases. Recognizable brands cut through the noise because players can instantly gauge the type of experience they’ll receive.
"Will a new Worms title innovate? Maybe not, but the brand promise is clear. Data shows that a large portion of Steam playtime is spent on games older than 18 months, indicating that players gravitate toward familiar titles rather than constantly chasing fresh IPs," Jorjani observed. "Even though there’s vocal demand for new experiences, purchasing behavior often favors remakes or sequels." He cited Riot Games and Supercell as examples of companies that juggle multiple projects, where a single breakout hit can eclipse the rest of the pipeline.
This dynamic, he argued, creates a strategic opening for indie developers. "The secret sauce for any successful game is early validation," Jorjani asserted. "The faster you can show something to a real player and receive positive feedback, the quicker you know you’re on the right track and can iterate. Indie studios excel at this because their cycles are short and they share progress openly—sometimes just a GIF.
When that content resonates, it signals momentum." He recounted the rise of Tiny Glade, an indie title that gained massive traction after early promotional GIFs went viral week after week. In contrast, a four‑year AAA cycle forces studios to wait until a near‑finished product before launching a massive marketing push, risking misalignment with audience expectations. Arrowhead is applying this early‑validation mindset to its upcoming project.
The studio plans to borrow tactics from mobile developers, who routinely test concepts through ad creatives to see which resonate before committing full resources. "We’ll put the game in players’ hands as early as possible," Jorjani explained. "Our goal is to craft experiences for a specific connoisseur, not the generic action gamer.
We’ll start by giving a hundred Helldivers veterans a prototype, then ask them about their favorite IPs and genres. If they love aliens and enjoy Helldivers, we know we’re hitting the right niche.
This data will guide us far earlier than a traditional two‑year post‑launch user test." He concluded by emphasizing the need to abandon outdated playbooks that keep projects hidden for years before a grand reveal. "The industry must let go of the old habit of keeping cards close to the chest for extended periods," he said.
"Instead, we should embrace continuous feedback, iterate quickly, and let the community shape the final product. That’s the way forward in an era where assumptions are constantly being rewritten."