Shams Jorjani, the chief executive of Arrowhead Game Studios—the studio behind the upcoming Helldivers 2—recently described the current state of the video‑game sector as a genuine "transitional period." In an interview with GamesIndustry.biz conducted on the bustling floor of Gamescom, Jorjani argued that the tactics and business models that sustained developers and publishers throughout the 2010s have largely lost their effectiveness in today’s marketplace. He acknowledged that, despite occasional pessimistic headlines, the overall health of the industry remains solid. "What has changed is the bedrock on which we built our expectations," he explained. "The playbooks that guided us from 2010 to 2020 simply don’t apply any longer.
The bottom line has been stripped from virtually every traditional business case. In the past we could assume a game would sell a certain amount; now you have to subtract that figure to zero. That’s the reality we’re living with." Jorjani identified several interlocking forces driving this upheaval. One of the most visible is the accelerating prominence of developers from the Asia‑Pacific region.
This year’s Gamescom Opening Night Live, for instance, highlighted a parade of titles from Chinese and South Korean studios, underscoring how these creators are no longer peripheral players but central contributors to the global catalogue. "There has always been a gradual influx of Asian games and companies into Western markets," Jorjani noted. "That trend has been building for a decade, but now we’re seeing a relentless stream of releases that are genuinely competitive." China, in particular, appears to be reaching a tipping point in terms of production quality. While the Chinese market remains heavily mobile‑centric—a factor that shapes design sensibilities and pacing—Jorjani believes the country’s console and PC output is catching up quickly.
He added that artificial intelligence is amplifying this speed, enabling studios to iterate and ship titles at an unprecedented cadence. The conversation then turned to AI, a technology Jorjani described as a "real change" rather than a fleeting hype wave like virtual reality once was. He emphasized that AI’s impact is being felt unevenly across regions.
In the West, developers wrestle with ethical dilemmas, data‑ownership concerns, and ideological debates about the role of machine‑generated content. In contrast, many Eastern studios appear less encumbered by such considerations, adopting AI tools pragmatically to boost productivity.
"Western developers are experiencing an existential crisis," he said. "As an artist, I’m torn between the creative, human‑to‑human connection and the fact that AI reduces much of our work to functional code. The East, however, seems to have embraced AI without moral hesitation, focusing solely on efficiency and output.
The West will likely lag in adoption, but the shift is inevitable." Beyond technology, Jorjani highlighted the structural challenge posed by the lengthy development cycles typical of AAA projects. Five‑ to six‑year timelines, often involving multiple studios spread across continents, create massive financial risk. Consequently, many Western publishers have leaned on established franchises and recognizable IPs to hedge against uncertainty, rather than investing heavily in brand‑new concepts. "When you have a market that’s constantly shifting, you need a safety net," he explained.
"A well‑known brand provides that cushion because players already know what to expect. That’s why you see a resurgence of legacy titles like Worms or the continued popularity of long‑standing series.
Even though half of the games on Steam are over 18 months old, players still gravitate toward familiar names rather than untested newcomers." Jorjani pointed to companies such as Riot Games and Supercell as exemplars of a diversified portfolio strategy: they juggle several projects simultaneously, allowing a single breakout hit to offset the quieter performance of other titles. This model, he argued, creates a strategic opening for indie developers, whose leaner production pipelines enable rapid iteration and early market validation. "The secret sauce for any successful game is early validation," Jorjani asserted. "The sooner you can show something to a real player and receive positive feedback, the more confidence you have to iterate and improve.
Indie studios excel at this because their cycles are short and they share progress openly—sometimes just a GIF or a short demo. If that content resonates, they know they’re on the right track." He cited the indie hit Tiny Glade as an example: early promotional GIFs sparked a viral response week after week, demonstrating how momentum can be built without waiting for a four‑year development marathon and a massive marketing splash.
Arrowhead itself is adopting this philosophy for its upcoming project. Jorjani said the studio is borrowing tactics from mobile game marketers, who routinely test concepts through ad performance before committing to full production. "We’ll hand the prototype to a select group of 100 Helldivers enthusiasts and ask them about their favorite IPs and themes," he revealed.
"If they love aliens and enjoy Helldivers, we know we’re hitting a sweet spot. This early, focused testing allows us to refine the experience long before a broad public launch." The CEO concluded with a call to abandon outdated playbooks that keep developers “close to the chest” for years before revealing anything. Instead, he advocated for a transparent, iterative approach that embraces community feedback from day one, leveraging AI tools where appropriate, and staying attuned to the rising influence of Asian studios. In summary, Jorjani’s outlook paints a picture of an industry in flux: longer development timelines, the surge of high‑quality games from China and South Korea, and the disruptive potential of AI are reshaping how games are conceived, built, and marketed.
While these forces introduce uncertainty, they also open doors for nimble indie creators who can validate ideas quickly, adapt to regional differences, and connect directly with niche audiences. Arrowhead’s own strategy—early player involvement, data‑driven iteration, and a willingness to experiment beyond the traditional AAA playbook—exemplifies how studios can thrive amid this rapid transformation.