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 exhibition at Makuhari Messe, Japan’s largest gaming venue, wrapped up after just four days when a looming typhoon forced the cancellation of the final day. The show’s narrative felt heavily anchored in nostalgia, with only faint signals pointing toward an ambiguous future. The industry as a whole is undergoing rapid change.
While the continued success of the Nintendo Switch 2 and the expanding PC market have helped mask underlying tensions—both worldwide and especially in Japan, where those platforms drive most recent growth—the direction of the medium remains hazy. Last year’s event was dominated by free‑to‑play and mobile titles; this year those segments were less conspicuous, and Chinese developers were notably absent amid heightened political friction.
Yet the overall impression was that the event was looking backward rather than forward, making it difficult to discern a clear vision for the next era. At SEGA’s stand, the most eye‑catching attraction was not the brand‑new IP *Stranger Than Heaven* from Ryu Ga Gotoku Studios, but the forthcoming remake of *Persona 4 Golden*. The booth buzzed with DJs, cosplay dancers, and a demo that quickly became the most visited attraction.
Square Enix, meanwhile, presented only two projects: the climactic conclusion of the *Final Fantasy VII* remake trilogy, with towering images of Meteor and Sephiroth, and *Final Fantasy Resonance*, an HD‑2D title that showcased characters from across the franchise’s history. Capcom’s space was largely devoted to demo kiosks for the new *Monster Hunter Wilds* expansion, though it also highlighted Switch 2 ports of *Resident Evil 2, 3* and *4* and introduced a fresh *Mega Man* entry. Among the major developers, only Bandai Namco and Konami unveiled truly new titles.
Bandai Namco displayed a fresh *Gundam* game alongside anime‑linked entries and *Ace Combat 8*. Konami, on the other hand, revealed a reimagined *Castlevania* with a radically different art direction and offered non‑playable showcases for brand‑new IPs such as *Rhapsody in Scarlet* and *Rev:Noir*, plus a teaser for *Silent Hill Townfall*.
Several factors explain this retrospective focus. TGS takes place in September, a month crowded with new releases as many publishers avoid direct competition with the November launch of *Grand Theft Auto VI*. Even without a playable demo, the event’s Netflix showcase—presented in a haptic‑enhanced theater—drew massive crowds, partly fueled by a free PlayStation t‑shirt featuring a GTA motif given to attendees. While these headline attractions were largely familiar names, one technology loomed unmistakably over the floor: generative AI.
Developers tout AI as a tool that can accelerate coding, generate concept art, and produce smaller assets at reduced cost. Critics, however, warn that such automation could lead to layoffs and diminish the handcrafted feel that many players cherish. There is also concern that rising hardware prices, exacerbated by AI‑driven demands, could transform gaming from a hobby into an exclusive luxury.
If any forward‑looking glimpse emerged at TGS, it was within the AI sphere. The Selected Indie 80, a curated indie showcase, was displaced from the main exhibition hall to a peripheral corridor, making room for an AI technology pavilion featuring companies that provide localization and asset‑creation services. Ironically, the winning indie title, *Finding Polka*, which also earned accolades at Gamescom and Bitsummit, relies entirely on hand‑drawn sketches for its visuals, underscoring the tension between AI and traditional artistry. Japan’s adoption of generative AI appears higher than in many other regions.
A preliminary excerpt from the upcoming 2026 Computer Entertainment Supplier’s Association (CESA) report, distributed to the press on opening day, indicated that 86 % of surveyed developers reported using AI tools in some capacity—a sharp rise from 51 % the previous year. Numerous games on display either promoted AI‑enhanced assets or incorporated AI‑generated elements directly into their presentations. Level‑5 has been particularly 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 practices on social media. However, a recent pre‑showcase of upcoming projects drew intense scrutiny both domestically and abroad for its heavy reliance on AI—ranging from AI‑generated “talking‑head” segments where a synthetic image of Hino addressed the audience, to AI‑enhanced trailers.
AI‑generated visuals appeared in teasers for *Holy Horror Mansion*, a new entry tied to the wildly popular *Yokai Watch* franchise, as well as remakes of *Yokai Watch 2* and *Professor Layton and the Curious Village*. Public backlash was so pronounced that Hino issued a personal apology, emphasizing the human craftsmanship behind the TGS booth (which itself was initially conceptualized using AI) and pledging to revise the studio’s AI usage policies. On the floor, AI’s influence was evident in demos for *Holy Horror Mansion* and *Decapolice*—the latter showing a marked evolution from its TGS 2023 preview. Nonetheless, developers claimed they stripped AI‑generated assets from playable builds, acknowledging player concerns about authenticity.
The episode highlights a broader anxiety: many fear AI could fundamentally reshape game creation beyond isolated experiments. Amid these challenges, a more optimistic trajectory surfaced: the integration of Japan’s long‑standing multimedia production‑committee model into gaming.
Originating in the 1970s film industry through Kadokawa, this system pools resources from diverse companies—food producers, retailers, fashion brands—to share risk and broaden the reach of intellectual property across movies, merchandise, and other media. Historically, gaming operated largely outside this framework, but recent developments suggest a convergence. Notably, convenience‑store chain Lawson has begun backing film projects for the promotional leverage it offers, and similar cross‑industry partnerships are now appearing in games.
SEGA, for instance, cited Disney as an inspiration for expanding into multimedia ventures, referencing collaborations such as *Sonic Crossworlds* featuring Godzilla and Evangelion characters, fashion tie‑ins with Balenciaga, and upcoming Netflix adaptations of *Crazy Taxi* and *Stranger Than Heaven* before their retail releases. In the indie sector, publishers are increasingly adopting the committee mindset.
Shueisha Games explicitly aims to fund distinctive projects while leveraging its broader media expertise to amplify successful titles. *Urban Myth Dissolution Center*, a best‑selling indie from last year, has already spawned manga, novels, merchandise, and an alternate‑reality game created by escape‑room studio SCRAP. Recent collaborations with *Silent Hill* for new merchandise and a free browser spin‑off further illustrate this trend.
Toei Games, traditionally a film studio, is now venturing into game development to nurture new IPs, while PARCO Games—originating from the national department‑store chain—supports art‑driven indie titles and showcases them through clothing lines and gallery displays. T‑shirts for games like *Berlin Apartment* were on display throughout the event. The future of Japanese gaming extends far beyond the Makuhari Messe halls. It will be shaped by how legacy franchises are monetized, how foreign AI technologies are integrated, and how games cross over into cinema, fashion, and other cultural arenas.
Next year’s TGS hopes to finally deliver a full five‑day program without weather interruptions, aiming to celebrate the next thirty years of interactive entertainment. Yet the most decisive signals for Japan’s gaming horizon may be forming far from the exhibition floor, in boardrooms, AI labs, and collaborative studios across the country.