Tokyo Game Show marked its 30th anniversary with the slogan "the longest five days of nonstop play," promising a glimpse into gaming's next chapter. In practice, the event at Japan's massive Makuhari Messe convention center wrapped up after just four days, the final day being called off due to an approaching typhoon. Rather than looking far ahead, the show seemed to turn its gaze back, offering only tentative clues about what lies ahead for the industry. The gaming sector is currently in a state of transition.
While the strong performance of the Nintendo Switch 2 and the continued expansion of PC gaming have helped mask some underlying challenges—especially in Japan, where those platforms now drive most of the recent growth—the overall direction remains murky. Last year's show was dominated by free‑to‑play and mobile titles, but this year those segments were less visible.
Chinese developers were notably absent, a fallout of rising political friction between Japan and China, leaving the exhibition without a clear, forward‑looking narrative. Instead, the floor was crowded with familiar names and nostalgic revivals. SEGA's booth, for example, was anchored not by a brand‑new intellectual property such as "Stranger Than Heaven" from the Ryu Ga Gotoku team, but by the forthcoming remake of "Persona 4 Golden." The space buzzed with DJs, cosplay dancers, and a demo that quickly became the booth's most visited attraction.
Square Enix, on the other hand, presented only two projects: the climactic finale of the "Final Fantasy VII" remake trilogy, with the meteor and Sephiroth looming over every visual, and "Final Fantasy Resonance," an HD‑2D title that showcased characters spanning the series' entire history. Capcom's area was largely consumed by demo kiosks for the new "Monster Hunter Wilds" expansion, though it also highlighted Switch 2 ports of the classic "Resident Evil" entries (2, 3, and 4) and a fresh "Mega Man" installment. Among the heavyweight developers, only Bandai Namco and Konami introduced genuinely new games. Bandai Namco unveiled a new Gundam title alongside anime‑tie‑in projects and "Ace Combat 8," while Konami surprised attendees with a reimagined "Castlevania" in an unconventional art style and non‑playable showcases for new IPs such as "Rhapsody in Scarlet" and "Rev:Noir," plus a preview of "Silent Hill Townfall." Several factors explain this retro‑heavy lineup.
TGS takes place in September, a month traditionally saturated with new releases as many publishers avoid clashing with the November launch of "Grand Theft Auto 6." Even without a playable demo, the event featured a Netflix showcase presented in a haptic‑enhanced theater, drawing crowds eager for the free GTA‑themed PlayStation T‑shirt handed out to viewers. While that attraction generated buzz, the overall emphasis remained on established franchises rather than bold, untested concepts.
The most conspicuous sign of the future, however, was the growing presence of generative AI. Developers tout AI as a tool that can streamline coding, accelerate the creation of small‑scale ideas, and reduce production costs. Critics, meanwhile, warn that the technology could trigger layoffs and erode the human craftsmanship that many players cherish.
There is also concern that rising hardware prices—exacerbated by AI‑driven demands—might transform gaming from a popular pastime into an exclusive luxury. On the show floor, AI's influence was unmistakable. The "Selected Indie 80" showcase, which normally receives prime hall space, was pushed into the corridors above the secondary exhibition area.
In its place, an AI technology pavilion took over, featuring companies that provide localization and asset‑generation services. Ironically, the winning indie title, "Finding Polka," earned accolades at Gamescom and Bitsummit for its hand‑drawn aesthetic, underscoring a tension between AI efficiency and artisanal art. Japan appears more receptive to AI than many other regions. A preliminary summary of the forthcoming 2026 Computer Entertainment Supplier’s Association (CESA) report—released to the press on the opening day—revealed that 86% of Japanese developers reported using some form of AI in their workflows, a steep jump from 51% the previous year.
Several games on display incorporated AI‑generated assets, and Level‑5 emerged as a high‑profile example. Level‑5 has been openly discussing its AI experiments since 2023, using the technology for concept art and promotional imagery. CEO Akihiro Hino frequently mentions these efforts on social media. Yet a recent pre‑show presentation of upcoming projects drew sharp criticism for its heavy reliance on AI, including AI‑generated talking‑head segments where a synthetic image of Hino addressed the audience, as well as AI‑enhanced trailers.
AI‑generated visuals appeared in trailers for "Holy Horror Mansion," a new entry tied to the wildly popular "Yokai Watch" franchise, as well as in remakes of "Yokai Watch 2" and "Professor Layton and the Curious Village." The backlash was so intense that Hino issued a public apology, emphasizing the role of human artists in the booth's design—initially conceived with AI assistance—and pledging to revise the company's AI usage policies. During the live demos, the AI impact was evident in titles like "Holy Horror Mansion" and the updated demo for "Decapolice," which looked markedly more polished than its 2023 iteration.
Nonetheless, developers asserted that any AI‑created assets were stripped from the playable builds, a move meant to assuage concerns about AI‑only experiences. The episode highlighted a broader anxiety: many fear that AI could fundamentally reshape the creative process, potentially sidelining human talent.
Amid these concerns, a more optimistic trajectory emerged through Japan's long‑standing multimedia and production‑committee model. Originating in the 1970s film industry via Kadokawa, this system pools resources from multiple companies—ranging from food producers to fashion brands—to share risk and cross‑promote content across movies, games, merchandise, and more.
Historically, gaming had been an outlier, but recent years show it being woven into this collaborative fabric. For instance, Lawson, a nationwide convenience‑store chain, routinely backs new films to secure exclusive promotions and merchandise. Now similar partnerships are appearing in gaming. The 2025 box‑office hit "Exit 8" began as an indie game before evolving into a major motion picture.
SEGA, in a Nikkei interview, cited Disney as inspiration for expanding its multimedia ambitions, citing recent collaborations such as Sonic crossovers with Godzilla and Evangelion, fashion tie‑ins with Balenciaga, and upcoming Netflix adaptations of "Crazy Taxi" and "Stranger Than Heaven" before those titles even launch in stores. Indie publishing is also receiving a boost.
Shueisha Games has declared a mission to fund distinctive projects while leveraging its broader media expertise to amplify successful titles. One of its standout successes, "Urban Myth Dissolution Center," topped indie sales charts last year and spawned manga, novels, merchandise, and an alternate‑reality game created by escape‑room studio SCRAP.
The company recently partnered with Silent Hill for new merchandise and a free browser spin‑off. Toei Games, traditionally a film studio, is venturing into game development to nurture new IPs that can expand across media.
Meanwhile, PARCO Games—originating from the eponymous department‑store chain—aims to champion art‑driven indie games, showcasing them in its retail spaces through clothing lines and gallery displays. T‑shirts for titles like "Berlin Apartment" were already on display at this year's show. In sum, the future of Japanese gaming extends far beyond the Makuhari Messe halls.
It will be shaped by how legacy franchises are monetized, how AI tools—both domestic and foreign—are integrated responsibly, and how games migrate onto cinema screens, fashion runways, and other cultural venues. The next edition of TGS hopes to finally deliver a full five‑day schedule without weather interruptions, offering a fresh platform to signal where the industry will head over the next three decades.
Yet the most decisive signals may come from boardrooms and collaborative ventures scattered across the country, far from the glittering exhibition space of the convention center.