Tokyo Game Show marked its 30th anniversary by branding the event as "the longest five days of nonstop play," promising a glimpse into gaming's next chapter. In practice, the show at Japan's massive Makuhari Messe convention center wrapped up after just four days, with the final day scrapped due to an approaching typhoon. Rather than looking boldly forward, the exhibition seemed fixated on revisiting familiar titles, offering only faint suggestions of what lies ahead.
The industry is in a state of transition. While the Nintendo Switch 2’s strong performance and the continued expansion of PC gaming have helped mask underlying challenges—especially in Japan, where these platforms drive most recent growth—the overall picture remains unsettled. Last year’s TGS was dominated by free‑to‑play and mobile titles; this year the presence of those segments was less pronounced, partly because Chinese developers stayed away amid rising diplomatic tensions.
Yet the overall narrative was still one of retrospection, making it hard to discern a clear strategic direction for the future. SEGA’s booth, for instance, was more about nostalgia than novelty.
The most eye‑catching attraction was the upcoming remake of *Persona 4 Golden*, which outshone the brand‑new IP *Stranger Than Heaven* from Ryu Ga Gotoku Studios. DJs and cosplay performers kept the energy high, but the demo for *Persona 4 Golden* stole the spotlight.
Square Enix, meanwhile, limited its showcase to two projects: the climactic conclusion of the *Final Fantasy VII* remake trilogy, with meteoric visuals and Sephiroth dominating every screen, and *Final Fantasy Resonance*, a new HD‑2D title that stitched together characters from across the franchise’s history. Capcom’s space was largely consumed by demo kiosks for the *Monster Hunter Wilds* expansion, though it also highlighted Switch 2 ports of classic *Resident Evil* entries and a fresh *Mega Man* game. Among the major developers, only Bandai Namco and Konami presented truly new concepts. Bandai Namco introduced a fresh *Gundam* title alongside anime tie‑ins and *Ace Combat 8*.
Konami, on the other hand, unveiled a reimagined *Castlevania* with a radically different art style and previewed non‑playable concepts such as *Rhapsody in Scarlet* and *Rev:Noir*, as well as a new *Silent Hill* experience called *Townfall*. Several factors explain this backward‑leaning lineup. TGS takes place in September, a window that many publishers avoid for new releases because they don’t want to clash with the November launch of *Grand Theft Auto VI*. Even without a playable demo, the event drew crowds to a Netflix showcase presented in an immersive, haptic‑enhanced theater, a surge partially fueled by the free PlayStation t‑shirts featuring the GTA logo that attendees received for watching.
While these attractions generated buzz, the most consistent theme on the floor was the dominance of known franchises rather than a bold vision for the next three decades of gaming. The one technology that unmistakably loomed over the show was generative AI.
Developers tout AI as a tool that can speed up coding, generate concept art, and produce smaller assets at lower cost. Critics, however, warn that such automation could lead to layoffs and erode the human craftsmanship that players cherish. There is also growing concern that rising hardware prices—exacerbated by AI‑driven performance demands—might turn gaming from a widespread hobby into a niche luxury.
If any forward‑looking glimpse existed at TGS, it was in the AI arena. The "Selected Indie 80" showcase, which traditionally offers indie developers prime demo space, was pushed out of the main hall and relegated to a peripheral corridor. In its place, an AI technology pavilion took over, featuring companies that provide localization, asset generation, and other AI‑powered services.
Ironically, the winning indie title, *Finding Polka*, earned accolades at Gamescom and Bitsummit for its hand‑drawn aesthetic, underscoring the tension between AI efficiency and artisanal creation. Japan appears more receptive to AI than many other markets. A preliminary excerpt from the upcoming 2026 Computer Entertainment Supplier’s Association (CESA) report, shared with the press on opening day, indicated that 86 % of Japanese developers reported using some form of AI in their workflows—a sharp rise from 51 % the previous year. Numerous games on display either advertised AI‑generated assets or incorporated them directly into promotional material.
Level‑5 has been especially vocal about its AI experiments. Since 2023 the studio has openly discussed employing AI for concept art and promotional imagery. CEO Akihiro Hino frequently references these tools on social media. However, a recent pre‑show showcase of Level‑5’s upcoming projects drew criticism for heavy AI usage: AI‑generated avatars of Hino appeared in “talking‑head” segments, and trailers for titles like *Holy Horror Mansion* (a new entry in the *Yokai Watch* universe) and remakes of *Yokai Watch 2* and *Professor Layton and the Curious Village* featured AI‑crafted visuals.
Public backlash was strong enough that Hino issued a personal apology, emphasizing the human effort behind the TGS booth and pledging to curb AI reliance in future productions. On the floor, AI’s influence was evident in demos such as *Holy Horror Mansion* and *Decapolice*, which showed noticeable improvements over their 2023 counterparts. Yet developers often removed AI‑generated assets from playable builds to avoid alienating purist players. The controversy highlights a broader anxiety: many fear that AI could reshape not just asset pipelines but the very creative soul of games.
Amid the AI debate, another, more optimistic trend emerged: the integration of Japan’s longstanding multimedia production‑committee model into gaming. Originating in the 1970s film industry, this system spreads financial risk by assembling a coalition of companies—ranging from food producers to fashion brands—that co‑own a project and profit from cross‑media extensions.
Historically, such committees have driven anime, movies, and merchandise; now they are gradually infiltrating video games. Examples abound. Convenience‑store giant Lawson frequently backs new movies, securing exclusive promotions and merchandise. Gaming is catching up: the indie title *Exit 8*—originally a modest game—became one of Japan’s top‑grossing films of 2025.
SEGA recently announced it is looking to emulate Disney’s cross‑platform strategy, leveraging its franchises (e.g., *Sonic the Hedgehog*, *Angry Birds*) for films, fashion collaborations (including a partnership with Balenciaga), and even store openings in China and Japan. Netflix adaptations of upcoming SEGA games like *Crazy Taxi* and *Stranger Than Heaven* were also confirmed before the games hit shelves.
Indie publishing is also evolving. Shueisha Games, for instance, aims not only to fund distinctive projects but also to use its extensive media network to expand successful titles into manga, novels, merchandise, and alternate‑reality games. *Urban Myth Dissolution Center*, a best‑selling indie from last year, has already spawned manga adaptations, novelizations, and a collaborative ARG with escape‑room creators SCRAP. Toei Games, traditionally a film studio, is venturing into game development to nurture new IPs, while PARCO Games—backed by the national department‑store chain—plans to promote art‑driven indie titles through in‑store exhibitions and apparel, as evidenced by the T‑shirts featuring *Berlin Apartment* displayed at this year’s show.
In sum, the future of Japanese gaming will be forged beyond the walls of Makuhari Messe. It will hinge on how the industry monetizes its legacy, adopts—or resists—AI technologies from global tech giants, and leverages the production‑committee model to turn games into transmedia experiences spanning cinema, fashion, and beyond.
Next year’s TGS hopes to finally deliver a full five‑day schedule without weather interruptions, aiming to showcase a more forward‑looking vision. Yet the most decisive signals about where Japanese gaming is headed are likely being made far from the exhibition halls, in boardrooms, studios, and the ever‑evolving landscape of AI and cross‑media collaboration.