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 Makuhari Messe, Japan's premier exhibition venue, wrapped up after four days when a looming typhoon forced the cancellation of the final day. The fair felt heavily anchored in nostalgia, with only occasional hints at the uncertain road ahead. 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 these platforms drive most recent growth—the industry’s direction remains murky. Last year's show was saturated with free‑to‑play and mobile titles, a trend that receded this year, partly because Chinese developers stayed away amid heightened political tensions. Yet the overall picture of where the industry is heading was hard to discern, as the exhibition seemed more preoccupied with revisiting past glories than showcasing bold new visions.
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." DJs, cosplay performers, and a lively demo area drew the biggest crowds. Square Enix presented just two projects: the climactic conclusion of the "Final Fantasy VII" remake trilogy, with the meteor and Sephiroth dominating every visual, and "Final Fantasy Resonance," an HD‑2D title that assembled characters from across the franchise's history. Capcom's space was largely occupied by demo kiosks for the new "Monster Hunter Wilds" expansion, alongside Switch 2 ports of classic Resident Evil entries and a fresh Mega Man game.
Among the major developers, only Bandai Namco and Konami introduced genuinely new titles. Bandai Namco unveiled a new Gundam game, placed alongside anime‑linked releases and "Ace Combat 8." Konami, meanwhile, offered a reimagined "Castlevania" with a radically different art style and non‑playable showcases for fresh IPs such as "Rhapsody in Scarlet" and "Rev: Noir," plus a preview of "Silent Hill Townfall." Several factors explain this backward‑leaning lineup. TGS takes place in September, a period traditionally dominated by new releases as many publishers avoid clashing with the November launch of "Grand Theft Auto 6." Even without a playable demo, the chance to experience Netflix's recent showcase in an immersive haptic‑enhanced theater generated huge queues, especially after attendees received a free GTA‑themed PlayStation T‑shirt for watching the presentation. While these attractions were impressive, they offered little insight into what the next three decades of gaming might hold.
The one technological current that could not be ignored was generative artificial intelligence. Developers tout AI as a tool that speeds up coding, generates concept art, and creates assets at lower cost.
Critics, however, warn that widespread AI adoption could lead to job cuts, and many players insist they want to see human craftsmanship rather than machine‑produced content. There is also growing anxiety that rising hardware prices could push gaming from a mainstream hobby to an exclusive luxury. If any forward‑looking glimpse emerged on the TGS floor, it was in the AI arena. The "Selected Indie 80" showcase—an initiative giving indie developers free demo space—was relegated from the main hall to peripheral corridors, making way for an AI technology pavilion that highlighted 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 hype and traditional artistry. Japan appears more receptive to generative AI than many other markets. A preliminary summary of the 2026 Computer Entertainment Supplier’s Association (CESA) report, distributed on the opening day, indicated that 86 % of surveyed developers said they used AI tools in some capacity—a sharp rise from 51 % the previous year.
Numerous games on display incorporated AI‑generated assets, either in promotional material or within the games themselves. Level‑5, for example, has been outspoken about its AI experiments, openly discussing how it employed AI to craft promotional imagery as early as 2023. CEO Akihiro Hino frequently references these efforts on social media. A recent pre‑showcase of Level‑5's upcoming projects drew intense scrutiny both domestically and abroad because of its heavy reliance on AI.
The presentation featured AI‑generated avatars of Hino delivering "talking‑head" introductions, and several trailers—including those for "Holy Horror Mansion" (a new entry in the wildly popular "Yokai Watch" franchise) and remakes of "Yokai Watch 2" and "Professor Layton and the Curious Village"—contained noticeable AI‑generated imagery. Public backlash was so strong that Hino issued a personal apology, emphasizing the human effort behind the TGS booth (which had initially been conceptualized with AI assistance) and promising to revise the company's AI usage policies.
On the exhibition floor, AI's influence could be seen in demos for titles like "Holy Horror Mansion" and "Decapolice," especially when compared with their 2023 iterations. However, developers generally removed AI‑generated assets from playable builds to avoid controversy.
The episode highlights a broader fear that AI could reshape the creative process in ways that many creators and fans find unsettling. Amid the AI debate, another, more optimistic trend began to surface: the integration of Japan's long‑standing multimedia production‑committee model into the gaming sphere. Originating in the 1970s film industry, the committee system spreads financial risk across multiple partners—ranging from food manufacturers to fashion brands—who each receive a stake in the resulting intellectual property.
This approach has historically powered successful anime, movies, and manga, and it is now being adapted for games. Surprisingly, non‑gaming entities are taking equity in video‑game projects.
Convenience‑store chain Lawson, for instance, often backs new films to secure exclusive promotions and merchandise. Gaming is following suit. The 2025 blockbuster "Exit 8," which began as an indie game, became one of Japan's highest‑grossing movies.
SEGA recently announced that it is looking to Disney's model for inspiration, aiming to expand its franchises into films, streaming series, and even fashion collaborations—such as recent partnerships with Balenciaga, Godzilla, and Evangelion characters in the "Sonic Crossworlds" title. SEGA also revealed Netflix adaptations of upcoming games like "Crazy Taxi" and "Stranger Than Heaven" before the titles have even launched. Indie publishing is also evolving.
Shueisha Games, leveraging its extensive media experience, is not only financing distinctive projects but also helping successful titles cross over into manga, novels, and merchandise. "Urban Myth Dissolution Center," a best‑selling indie from last year, has already spawned manga adaptations, novelizations, and an alternate‑reality game (ARG) created by the escape‑room collective SCRAP. The studio recently partnered with Silent Hill for new merchandise and a free browser‑based spin‑off.
Other traditional Japanese brands are making similar moves. Toei Games, historically a film studio, is branching into game development to nurture new IP that can be expanded across media. PARCO Games, founded by the nationwide department‑store chain, plans to support art‑driven indie titles and showcase them in its retail locations through clothing lines and gallery displays. T‑shirts featuring games 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 exhibition hall. It lies in the monetization of nostalgic properties, the adoption and regulation of AI technologies from global tech giants, and the seamless translation of games into movies, fashion, and other cultural arenas. The next edition of TGS hopes to finally deliver a full five‑day schedule without weather‑related interruptions, offering a platform for the industry to articulate its vision for the next thirty years.
Yet the most decisive forces shaping that future—political dynamics, AI policy, and cross‑media partnership strategies—are likely unfolding far from the bright lights of the convention center.