Shams Jorjani, the chief executive of Arrowhead Game Studios – the team behind Helldivers 2 – told GamesIndustry.biz at Gamescom that the video‑game sector is currently undergoing a profound transformation. He described the present moment as a "transitional phase," emphasizing that the formulas which guided developers and publishers throughout the 2010s have largely lost their effectiveness. "There have been moments of doom‑and‑gloom, but overall the industry remains healthy," Jorjani explained.
"What has changed is the foundation of our assumptions. The playbooks that served us from 2010 to 2020 simply don’t work anymore. The bottom line of every business case has evaporated.
No one could guarantee a title’s sales, and the numbers we once took for granted have been reduced to zero. That’s the reality we face today." Several forces are driving this shift.
One of the most visible is the continued rise of developers from the Asia‑Pacific region. Jorjani pointed to this year’s Gamescom Opening Night Live as a showcase of the growing capabilities of studios from China and South Korea. "There’s been a steady influx of Asian games and companies into Western markets over the past decade," he said, "but now we’re seeing a relentless stream of titles that are genuinely competitive." China, in particular, appears to have reached a tipping point in terms of production quality. Jorjani observed that while Chinese gamers remain largely mobile‑centric – a factor that shapes design sensibilities – the overall pace of development is accelerating, a trend he attributes in part to artificial intelligence.
"AI is speeding everything up. More games are being released faster than ever, across every platform," he noted.
The emergence of AI has introduced a new layer of uncertainty. Predicting the market five years ahead, let alone a decade, has become far more challenging. Jorjani contrasted the way AI is being embraced in the East versus the West.
In Western markets, developers grapple with ethical questions, data‑training permissions, and artistic integrity. In many Eastern studios, however, the technology is adopted pragmatically, with little moral hesitation. "It’s similar to what we see in the broader IT sector: teams have simply switched to AI because it works, without the philosophical baggage that often accompanies it in the West," he said.
He added that this cultural divide creates an existential dilemma for Western creators. "As an artist, I care about the human connection. When you reduce a game to pure software, you lose that emotional layer.
The West will adopt AI more slowly, but the shift is inevitable." Beyond AI, another major obstacle to long‑term planning is the sheer length of AAA development cycles. Projects that aim for blockbuster status frequently span five to six years and involve multiple teams spread across time zones.
This reality has led many Western publishers to lean on established franchises rather than invest heavily in new intellectual property. "When development timelines are this long, you need a safety net," Jorjani explained. "Brand recognition and existing fan bases are the only real risk mitigators." He illustrated this point with the concept of "analysis paralysis." With an ever‑growing flood of releases, consumers can become overwhelmed. A familiar name like Worms provides instant reassurance, even if the new installment isn’t groundbreaking.
Data from Steam Replay 2025 shows that roughly 44 % of player hours are spent on games that are between one and seven years old, underscoring the market’s preference for known titles over fresh IPs. "People loudly demand new experiences, yet they often gravitate toward remakes or sequels," Jorjani observed. Jorjani cited companies such as Riot Games and Supercell as examples of studios that juggle multiple projects simultaneously, allowing one hit to carry the others. This model, he argued, highlights a strategic advantage for indie developers, who can move much more nimbly.
"The secret sauce for any successful game is early validation," he said. "The sooner you put something in front of players and receive positive feedback, the quicker you can iterate. Indie teams excel at this because their development cycles are short and they share progress openly—sometimes just a GIF or a short demo.
When a community reacts positively, you know you’re on the right track." He recalled the indie hit 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 risks missing that early momentum. Arrowhead itself is adopting this early‑validation mindset for its next project. Jorjani explained that the studio is borrowing tactics from mobile developers, who frequently test concepts through ads and iterate based on performance metrics.
"We’ll put the game in the hands of players as early as possible," he said. "Our philosophy is to target a very specific type of connoisseur, not just any action‑game fan. We might give a prototype to 100 dedicated Helldivers players, ask them about their favorite IPs, and see how they respond to alien‑themed content versus other themes. This early data lets us confirm we’re hitting the right niche before we invest years into full production." He concluded with a call to abandon outdated playbooks.
"You can’t keep your cards close to the chest for years and then expect a spectacular reveal. The industry has changed; the only way to thrive is to embrace rapid feedback, lean development, and a willingness to experiment with new technologies like AI while staying true to the artistic core of games."