Shams Jorjani, the chief executive of Arrowhead Game Studios – the team behind Helldivers 2 – recently told GamesIndustry.biz at Gamescom that the video‑game sector is undergoing a profound transformation. He described the current climate as a "transitional phase" and warned that the formulas that guided developers and publishers throughout the 2010s are now largely obsolete. "There have been moments of pessimism, but overall the industry remains healthy," Jorjani explained.
"What has changed is the foundation of the assumptions we used to make. The playbooks that served us from 2010 to 2020 simply don’t work anymore. The bottom line has vanished from every business case you once relied on. No one could guarantee how many copies a title would sell, and the numbers you once projected are now effectively zero.
That is the reality we face today." He identified three inter‑related forces driving this upheaval. The first is the continued rise of development studios across the Asia‑Pacific region. This year's Gamescom Opening Night Live highlighted the growing creative muscle of Chinese and South Korean companies, showcasing titles that could compete on a global stage.
"Asian games have been making steady inroads into Western markets for a decade," Jorjani said. "Now we are seeing a steady stream of releases that are not just niche exports but mainstream hits." China, in particular, appears to have reached a tipping point in terms of production quality.
While the Chinese market remains heavily mobile‑centric – a factor that shapes design sensibilities – the speed and ambition of its developers are accelerating, a trend Jorjani attributes in part to artificial intelligence. "AI is turbo‑charging the pace at which games are created worldwide," he noted. "Developers can iterate faster, generate assets more efficiently, and experiment with mechanics that would have taken months or years to prototype a few years ago." The second catalyst is the rapid emergence of AI technologies. Jorjani stressed that, unlike previous hype cycles such as virtual reality, AI represents a genuine structural shift.
However, its adoption varies dramatically between East and West. In Western markets, the conversation often revolves around ethics, data ownership, and artistic integrity.
In contrast, many Asian studios appear less concerned with those debates, focusing instead on practical implementation. "In the West we ask whether AI is ethical, whether companies should be allowed to train on certain data sets, and whether it threatens artistic expression," he said. "In the East, the attitude is more pragmatic – if the tool works, they use it without hesitation. This cultural divergence creates different development rhythms and risk calculations." Jorjani admitted that the West may experience an "existential crisis" as artists grapple with the notion that AI can turn creative work into functional code.
He predicts a slower, but inevitable, uptake of AI in Western studios, driven by market pressure and the need to stay competitive. The third challenge is 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 forces publishers to lean on established franchises and recognizable brands to mitigate risk. Jorjani explained that brand familiarity reduces uncertainty because consumers know what they are buying. "When you have a crowded marketplace, you get analysis paralysis," he said. "Players can instantly recognize a name like Worms or Helldivers and understand the experience they’ll get, even if the game isn’t groundbreaking.
Data shows that a significant portion of Steam playtime still belongs to titles that are more than 18 months old, indicating a preference for familiar experiences over untested new IPs." Nevertheless, Jorjani believes that indie developers hold a strategic advantage in this environment. Because smaller teams can iterate quickly and gather early feedback, they are able to validate concepts before committing extensive resources. He cited the success of Tiny Glade, an indie title that gained momentum after the developers shared early GIFs that resonated with the community. "Early validation is the secret sauce for any successful game," Jorjani asserted.
"If you can put something in front of players early, get positive reactions, and iterate, you dramatically reduce risk. This is a luxury that large studios, with four‑year cycles, simply don’t have." Arrowhead itself is adopting this approach for its next project. Jorjani described a plan to involve a select group of dedicated Helldivers fans from the outset, using their preferences to shape the game's direction.
By targeting a specific subset of players—those who love alien‑themed action and already appreciate the Helldivers brand—the studio hopes to refine its design early and avoid the costly, late‑stage marketing pushes that have traditionally plagued AAA development. "We’ll give the prototype to about a hundred Helldivers enthusiasts, ask them about their favorite IPs, and see how our concept resonates compared to a control group that simply likes Helldivers but not the alien theme," he explained. "If the targeted group rates the experience higher, we know we’re on the right track. Doing this early, rather than waiting two years for broad user testing, gives us a competitive edge." Jorjani concluded by urging the industry to abandon the old habit of keeping projects hidden until they are polished.
Instead, he advocated for a more transparent, iterative development model that embraces community feedback and leverages AI tools to accelerate creation. In summary, the Arrowhead CEO highlighted three pivotal trends reshaping gaming: the ascendancy of Asian studios, the disruptive potential of AI, and the growing risk associated with long‑term AAA development. While these forces make forecasting the next five or ten years difficult, they also open opportunities for nimble indie creators who can validate ideas quickly and adapt to shifting market dynamics.
Arrowhead’s own strategy—early player involvement, data‑driven iteration, and selective use of AI—exemplifies how a mid‑size studio can navigate this new landscape and remain competitive in an industry where the old playbooks no longer apply.