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 Makuhari Messe—Japan’s largest gaming venue—wrapped up after just four days, with the final day scrapped because of an approaching typhoon. The exhibition felt heavily anchored in nostalgia, offering only faint hints about the direction the industry might take. The gaming sector is currently in a state of transition.
While the success of the Nintendo Switch 2 and the continued expansion of PC gaming have helped mask underlying challenges—especially in Japan, where those platforms drive most recent growth—the overall picture remains unsettled. Last year’s show was dominated by free‑to‑play and mobile titles; this year, the presence of those segments was less pronounced, and Chinese developers were noticeably absent due to rising political tensions. Yet, amid the sea of familiar faces, it was difficult to discern a clear, forward‑looking narrative.
SEGA’s booth, for example, seemed more interested in revisiting old successes than unveiling new concepts. 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, cosplay performers, and a bustling demo area kept the crowd engaged, but the focus remained on a nostalgic title. Square Enix, on the other hand, presented only two projects: the concluding chapter of the *Final Fantasy VII* remake saga, dominated by images of Meteor and Sephiroth, and *Final Fantasy Resonance*, a high‑definition 2D‑style game that showcased characters from across the franchise’s history.
Capcom’s space was largely taken up by demo kiosks for the new *Monster Hunter Wilds* expansion, alongside Switch 2 ports of classic *Resident Evil* entries and a fresh *Mega Man* title. Among the major developers, only Bandai Namco and Konami offered genuinely new experiences. Bandai Namco highlighted a fresh *Gundam* game, paired with anime‑based tie‑ins and *Ace Combat 8*.
Konami surprised attendees with a reimagined *Castlevania* rendered in an unconventional art style, and non‑playable showcases for new IPs such as *Rhapsody in Scarlet*, *Rev:Noir*, and the upcoming *Silent Hill Townfall*. Several factors explain this retro‑heavy 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 drew crowds to a Netflix showcase presented in an immersive, haptic‑enhanced theater, boosted in part by a complimentary GTA‑themed PlayStation T‑shirt for attendees. While that attraction was an outlier, the bulk of the "nonstop play" promise was fulfilled by well‑known franchises rather than bold, untested concepts.
One technology, however, was unmistakably present: generative artificial intelligence. Developers tout AI as a tool that can accelerate coding, generate assets quickly, and cut production costs. Critics warn it could lead to layoffs and dilute the human artistry that players cherish.
There is also concern that rising hardware prices, potentially driven by AI‑enhanced demands, could make gaming an increasingly exclusive hobby. If any forward‑looking glimpse emerged at TGS, it was within the AI sphere.
The "Selected Indie 80" showcase—an indie spotlight that previously enjoyed prime hall space—was relegated to a peripheral corridor, making way for an AI technology pavilion featuring companies that provide localization and asset‑creation services. Ironically, the indie winner, *Finding Polka*, earned accolades at Gamescom and Bitsummit for its hand‑drawn aesthetic, underscoring the tension between AI‑generated content and traditional artistry.
Japan’s appetite for generative AI appears higher than in many other regions. A preliminary summary of the upcoming 2026 Computer Entertainment Supplier’s Association (CESA) report, released on the show’s opening day, indicated that 86 % of Japanese developers reported using some form of AI in their workflow—a steep rise from 51 % the previous year. Numerous titles on display either advertised AI‑enhanced assets or incorporated them directly into promotional material. Level‑5 exemplifies this trend.
The studio has been openly discussing its AI‑driven workflows since 2023, with CEO Akihiro Hino frequently posting about the technology on social media. A pre‑show showcase of Level‑5’s upcoming projects attracted scrutiny for its heavy reliance on AI—both in AI‑generated “talking‑head” segments where a synthetic image of Hino addressed the audience, and in trailers for games like *Holy Horror Mansion* (a spin‑off of the *Yokai Watch* franchise) and remakes of *Yokai Watch 2* and *Professor Layton and the Curious Village*. Public backlash was strong enough that Hino issued a personal apology, emphasizing the human craftsmanship behind the booth and pledging to adjust the company’s AI usage going forward.
On the exhibition floor, AI’s influence could be seen in demos for *Holy Horror Mansion* and *Decapolice*, which showed noticeable improvements over their 2023 presentations. Nevertheless, Level‑5 confirmed that any AI‑generated assets were stripped from the playable builds, reflecting a broader industry caution: while AI can accelerate development, there is a palpable fear that over‑reliance could erode the creative soul of games. A more optimistic vision for the future emerged through Japan’s long‑standing multimedia and production‑committee model.
Originating in the 1970s film industry with Kadokawa, this collaborative approach spreads financial risk across multiple partners—ranging from food producers to fashion brands—who each gain rights to exploit the property in their respective domains. Historically, this model has been applied to movies and anime, but it is now seeping into gaming.
Unexpected players are beginning to stake claims in the gaming ecosystem. Convenience‑store chain Lawson, for instance, frequently backs new films to secure promotional opportunities and merchandise sales.
Gaming is following suit. *Exit 8*, a 2025 box‑office hit in Japan, began life as an indie game before expanding into a full‑blown cinematic release. SEGA recently announced that it is looking to emulate Disney’s cross‑media strategy, leveraging titles like *Sonic the Hedgehog* and *Angry Birds* to launch films, fashion collaborations (e.g., with Balenciaga), and even store openings in China and Japan. Netflix adaptations of upcoming games such as *Crazy Taxi* and *Stranger Than Heaven* were also unveiled before the games hit shelves.
Indie publishing is receiving a boost as well. Shueisha Games has articulated a mission to fund distinctive projects while using its broader media expertise to amplify successful titles. *Urban Myth Dissolution Center*, a top‑selling Japanese indie from last year, has already spawned manga, novels, merchandise, and an alternate‑reality game created by escape‑room studio SCRAP. Recent partnerships with Silent Hill for new merchandise and a free browser spin‑off illustrate the growing synergy between indie creators and established IP holders.
Other non‑traditional entrants include Toei Games, which is transitioning from film into game development to nurture new IPs, and PARCO Games, founded by the national department‑store chain. PARCO aims to champion art‑driven indie games, showcasing them in its retail spaces through clothing lines and art exhibitions; T‑shirts featuring titles like *Berlin Apartment* were on display at TGS.
In sum, the future of Japanese gaming extends far beyond the Makuhari Messe exhibition hall. It lies in the monetization of nostalgic properties, the integration of AI tools from global tech giants, and the cross‑pollination of games with movies, fashion, and other media.
Next year’s TGS hopes to finally deliver a full five‑day schedule without weather interruptions, offering a fresh platform to explore what the next thirty years of play might look like. Yet the most decisive signals for the industry’s trajectory will likely emerge from collaborations and technological decisions made far from the glittering lights of the convention center.