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, with the final day scrapped due to an approaching typhoon. The fair felt heavily anchored in nostalgia, offering only tentative signals about the industry's direction.
The gaming sector is currently in a state of transition. While the Nintendo Switch 2’s strong launch and the continued expansion of PC gaming have helped mask underlying challenges—especially in Japan, where these platforms now drive most of the recent growth—the overall picture remains unsettled. Last year’s show was awash with free‑to‑play and mobile titles; this year, those segments were less visible, and Chinese developers were noticeably absent amid ongoing diplomatic friction. Yet the event struggled to articulate a clear vision for the future, as many of its highlights were rooted in past successes.
SEGA’s stand, for instance, was dominated not by brand‑new intellectual properties but by the upcoming remake of Persona 4 Golden, which attracted the biggest crowds alongside DJ sets and cosplay performances. Square Enix presented only two projects: the concluding chapter of the Final Fantasy VII remake saga, which filled the booth with 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 taken up by demo kiosks for the Monster Hunter Wilds expansion, while also promoting Switch 2 ports of Resident Evil 2, 3 and 4 and a fresh Mega Man entry. Among the major developers, only Bandai Namco and Konami unveiled genuinely new games. Bandai Namco offered a fresh Gundam title alongside anime tie‑ins and Ace Combat 8, whereas Konami introduced a reimagined Castlevania with a radically different art style and previewed non‑playable concepts such as Rhapsody in Scarlet, Rev:Noir, and Silent Hill Townfall. Several factors explain this backward‑leaning lineup.
TGS takes place in September, a month traditionally crowded with new releases as many publishers avoid the November launch window dominated by Grand Theft Auto VI. Even without playable demos, the event attracted crowds to a Netflix showcase presented in an immersive, haptic‑enhanced theater, partly because attendees received a free GTA‑themed PlayStation shirt for watching.
While these attractions drew attention, the most prominent "future" element on the floor was the pervasive presence of generative AI. Developers tout AI as a tool that can accelerate coding, generate concept art, and reduce production costs. Critics, however, warn that it could trigger layoffs and erode the handcrafted quality that players cherish. There is also concern that rising hardware prices, driven by AI‑intensive demands, could push gaming further out of reach for many.
AI’s imprint was unmistakable at TGS. The Selected Indie 80, a curated showcase of independent titles, was relegated from the main exhibition hall to a peripheral corridor, making way for an AI technology pavilion where companies displayed localization and asset‑creation services.
Ironically, the winning indie, Finding Polka—also honored 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 markets.
A preliminary excerpt of the 2026 Computer Entertainment Supplier’s Association (CESA) report, released on opening day, revealed that 86 % of Japanese developers reported using some form of AI in their workflows, up sharply from 51 % the previous year. Several games on display incorporated AI‑generated assets, and Level‑5 emerged as a high‑profile case study. Level‑5 has been openly discussing its AI experiments since 2023, with CEO Akihiro Hino frequently posting about the technology on social media.
A pre‑show showcase of upcoming projects drew intense scrutiny for its heavy reliance on AI, including AI‑generated avatars of Hino delivering game introductions and AI‑enhanced trailers. AI‑generated imagery appeared in teasers for Holy Horror Mansion—part of the wildly popular Yokai Watch franchise—as well as remakes of Yokai Watch 2 and Professor Layton and the Curious Village. The backlash was swift; Hino issued a public apology, emphasized the human effort behind the TGS booth (which itself was initially conceptualized with AI assistance), and pledged to revise the studio’s AI usage policies.
On the exhibition floor, AI’s influence could be seen in demos for Holy Horror Mansion and Decapolice, though developers reportedly stripped AI‑generated assets from the playable builds. The controversy highlights a broader anxiety that AI could fundamentally reshape game creation beyond isolated experiments. Amid the AI debate, a more optimistic trend emerged: the growing integration of Japan’s traditional multimedia production‑committee model into gaming. Originating in the 1970s film industry, this system spreads financial risk across multiple partners—ranging from food producers to fashion brands—who collectively own the rights to a project and benefit from cross‑media adaptations.
Historically, such collaborations were rare in games, but they are gaining traction. For example, convenience‑store chain Lawson has begun backing film projects to secure promotional opportunities and merchandise sales, and now similar partnerships are appearing in gaming. SEGA recently cited Disney as an inspiration, aiming to expand its IPs into films, streaming series, and fashion collaborations.
The company announced Netflix adaptations of upcoming titles Crazy Taxi and Stranger Than Heaven before the games even launched, and highlighted tie‑ins such as Godzilla and Evangelion characters appearing in Sonic Crossworlds, as well as a partnership with luxury brand Balenciaga. Indie publishing is also benefitting from this ecosystem.
Shueisha Games, leveraging its extensive experience in manga and literature, is funding distinctive indie projects and helping successful titles transition into other media. Urban Myth Dissolution Center’s hit indie Urban Myth saw adaptations into manga, novels, merchandise, and even an alternate‑reality game (ARG) created by escape‑room designers 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—supports art‑driven indie releases and showcases them in its retail locations, with T‑shirts for titles like Berlin Apartment displayed at TGS.
In sum, the future of Japanese gaming will unfold beyond the confines of Makuhari Messe. It will be shaped by how legacy franchises are monetized, how AI tools are responsibly integrated, and how cross‑media collaborations turn games into movies, fashion statements, and global experiences. Next year’s TGS hopes to finally deliver a full five‑day program without weather interruptions, but the most consequential decisions for Japan’s gaming landscape are likely being made far from the exhibition halls, in boardrooms, studios, and tech labs across the country.