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 genuine "transitional phase." In an interview with GamesIndustry.biz conducted on the floor of Gamescom, Jorjani explained that the formulas that guided developers and publishers throughout the 2010s have largely lost their effectiveness in today’s market. "There have been moments of pessimism, but overall the industry remains healthy," he observed.
"What’s changed is that the foundations of our assumptions have been upended. The playbooks that served us from 2010 to 2020 simply don’t work any longer. The bottom line of every business case has vanished.
No one can accurately predict how many copies a title will sell; the old baseline has been erased, and that’s the new reality." Jorjani identified several forces driving this shift. One of the most visible is the continued rise of development studios across the Asia‑Pacific region. This year’s Gamescom Opening Night Live, for instance, served as a showcase for the capabilities of Chinese and South Korean developers, underscoring how Asian games are increasingly entering Western consciousness.
"For a decade there’s been a steady influx of Asian games and companies into the West," Jorjani said. "Now it feels like a relentless stream—game after game after game—proving that these studios can compete at the highest level." 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 influences design sensibilities—Jorjani believes the country’s output is accelerating, partly thanks to artificial intelligence.
"The quality is definitely climbing," he noted. "There’s still room for growth, but the sensibilities are evolving. Mobile dominance shapes the way games are built, yet AI is compressing development timelines everywhere, allowing titles to appear faster and more frequently." Artificial intelligence, according to Jorjani, is the most disruptive technological wave the industry has seen in recent memory.
Unlike previous hype cycles such as virtual reality, AI is already reshaping production pipelines, asset creation, and even design iteration, creating a level of market unpredictability that makes long‑range forecasting extremely challenging. "AI is transformative in a way that feels fundamentally different," he explained. "What’s fascinating is the cultural divide in how the West and the East approach it. In the West, the conversation often centers on ethics—whether it’s permissible to train models on certain data, whether it undermines artistic integrity, and so on.
In the East, the discussion is far less restrained; developers adopt AI wholesale because it delivers functional code quickly, and the moral debate takes a back seat." Jorjani admitted that Western developers are experiencing an "existential crisis" as they grapple with the notion that a piece of software, powered by AI, can produce content that once required a human artist’s touch. He predicts that the West will adopt AI more slowly, but the shift is inevitable. Beyond technology, the industry’s structural challenges remain significant.
AAA titles still demand five to six years of development, coordinated across multiple studios and time zones. This lengthy horizon forces many Western publishers to lean on established franchises rather than invest heavily in new intellectual property.
"Multiple forces converge at once," Jorjani said. "Long development cycles mean you have to be absolutely certain your bet will pay off. Brand recognition becomes the primary risk mitigator.
If you release a game under a familiar name, players know what to expect, which reduces uncertainty." He illustrated this point with the concept of "analysis paralysis": with an ever‑growing flood of releases, consumers can become overwhelmed. Recognizable series—such as Worms, which has existed for decades—provide a shortcut for decision‑making, even if the new installment isn’t groundbreaking.
Data supports this behavior. Steam’s 2025 replay report showed that nearly half of all playtime was spent on titles older than 18 months, and roughly 44 % of user hours were on games released between one and seven years ago. While gamers vocally demand fresh experiences, purchasing patterns reveal a preference for familiar, proven properties and remakes.
Arrowhead’s own success with Helldivers illustrates how a combination of luck, distinctive design, and timing can break through the noise. Jorjani highlighted companies like Riot Games and Supercell, which often juggle several projects simultaneously; a single hit can eclipse the rest, allowing the studio to sustain itself while the other titles remain in development. For indie developers, however, this environment offers a strategic advantage.
Jorjani emphasized the importance of "early validation"—getting a prototype or even a short GIF in front of players as soon as possible to gauge reaction. This rapid feedback loop enables small teams to iterate quickly, reducing the risk of investing years into a concept that may not resonate.
He cited the indie hit Tiny Glade as an example: early promotional GIFs generated viral interest week after week, demonstrating the power of community response. In contrast, a four‑year AAA cycle that waits until a game is complete before launching a massive marketing push lacks that iterative safety net. Arrowhead plans to embed this philosophy into its next project.
The studio is borrowing a tactic from mobile developers: testing concepts through ad‑style snippets and measuring which versions attract the most engagement. Jorjani described a concrete plan: they will distribute early builds to a curated group of 100 dedicated Helldivers players, ask them about their favorite franchises and themes, and compare responses between those who love alien‑centric games and those who do not. This data‑driven approach aims to confirm that the game resonates with a target niche before committing to a full‑scale production.
"We want to create games for a specific kind of connoisseur, not just any action‑game fan," he said. "By putting the experience in the hands of the right audience early, we can adjust course, refine the vision, and avoid the old habit of keeping everything under wraps for years before a big reveal." In summary, Jorjani argues that the industry’s old playbooks—long development timelines, reliance on established IP, and cautious adoption of emerging tech—are no longer sufficient.
The surge of Asian studios, the rapid integration of AI, and the heightened importance of early community validation are reshaping how games are conceived, built, and marketed. While Western studios may lag in AI adoption due to ethical debates, they will eventually catch up. Meanwhile, indie creators who can iterate quickly and engage directly with their audience stand to thrive in this new, fast‑moving landscape.