Shams Jorjani, the chief executive of Arrowhead Game Studios—the studio behind Helldivers 2—recently described the current state of the video‑game sector as a "transitional phase" that is reshaping how developers and publishers operate. In an interview with GamesIndustry.biz conducted at Gamescom, Jorjani explained that the assumptions and playbooks that guided the industry throughout the 2010s have essentially become obsolete. He said that while occasional pessimistic headlines surface, the overall health of the market remains solid; the real challenge is that the foundational premises on which business cases were built have been upended.
The old formula of estimating a minimum sales figure for a title no longer holds water—if you subtract zero from whatever projection you once trusted, you are left with the new reality. Several forces are driving this upheaval.
One of the most visible is the continued rise of development studios in the Asia‑Pacific region. This year's Gamescom Opening Night Live highlighted the growing creative firepower of companies from China and South Korea, underscoring a decade‑long trend of Asian games gaining footholds in Western markets. Jorjani observed that the influx is no longer a novelty; it has become a steady stream of high‑quality releases that are reshaping consumer expectations. China, in particular, appears to have reached a tipping point in terms of production values and design sophistication.
Jorjani noted that while Chinese gamers still favor mobile platforms, which influences the aesthetic and mechanical choices of local developers, the overall pace of development is accelerating. He attributed part of this speed‑up to artificial intelligence, which is allowing studios to generate content more quickly and iterate at a faster cadence.
AI, however, introduces a new layer of uncertainty. Jorjani compared the current hype around artificial intelligence to previous technology cycles—such as virtual reality—that promised radical change but fell short of expectations. He argued that AI is fundamentally different because it is already being integrated into production pipelines worldwide, albeit with divergent cultural attitudes.
In the West, developers wrestle with ethical questions about data usage, bias, and artistic integrity, often debating whether AI should be embraced or resisted on moral grounds. In contrast, many Eastern studios appear less concerned with those issues and are more pragmatic, adopting AI tools to boost efficiency without the same level of public scrutiny. This cultural split creates an "existential crisis" for Western creators, according to Jorjani. As an artist, he feels the tension between preserving a human touch in storytelling and the lure of automating parts of the creative process.
He predicts that the West will adopt AI more slowly, but ultimately the technology will become indispensable. Beyond AI, another structural challenge remains: the length of development cycles for AAA titles.
Large‑scale projects often span five to six years and involve multiple teams spread across continents. This lengthy timeline makes it risky to invest in brand‑new intellectual property (IP) when market conditions can shift dramatically before a game even launches.
Consequently, many Western publishers have leaned toward sequels, remasters, and established franchises that provide a safety net through brand recognition. Jorjani explained that brand familiarity mitigates risk because players know what to expect, reducing the "analysis paralysis" that can occur when consumers are bombarded with a constant flood of new releases. He cited data from Steam Replay 2025 showing that 44 % of user playtime was spent on games between one and seven years old, indicating that gamers often gravitate toward titles they recognize rather than taking chances on unknown IPs.
While the industry cries out for fresh experiences, purchasing behavior still favors familiar names. Nevertheless, Jorjani sees a strategic opening for indie developers.
He pointed to companies like Riot Games and Supercell, which maintain a portfolio of projects where only a few become breakout hits while the rest fade into obscurity. Indie studios, by contrast, can validate concepts early and iterate rapidly. Jorjani highlighted the importance of "early validation"—getting a prototype or even a short GIF in front of players to gauge reaction.
This feedback loop allows developers to pivot before committing massive resources. Arrowhead itself is adopting this approach for its upcoming project. Inspired by mobile‑gaming practices that test concepts through ad performance, the studio plans to place early builds directly into the hands of a select group of dedicated Helldivers fans. By surveying these players about their favorite genres and IPs, Arrowhead hopes to refine its target audience and ensure the game resonates with a specific niche rather than a broad, undefined market.
This method contrasts sharply with the traditional model of keeping a game under wraps for years before a grand reveal. Jorjani concluded that the industry must abandon the old playbook of secrecy and long‑term speculation. Instead, developers should embrace transparency, rapid iteration, and data‑driven decision‑making. By doing so, they can navigate the unpredictable landscape shaped by longer development cycles, the surge of Asian competition, and the transformative power of AI.
The future, he suggests, belongs to those who can adapt quickly, validate early, and connect authentically with a well‑defined player base.