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 festival at Japan’s massive Makuhari Messe venue wrapped up after only four days, with the final day scrapped due to an approaching typhoon. The exhibition felt heavily anchored in nostalgia, offering only faint signals of what lies ahead for the medium. The industry as a whole is in a state of transition.
While the success of the Nintendo Switch 2 and the continued expansion of PC gaming have helped mask some of the sector’s growing pains—both worldwide and especially in Japan, where those 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 conspicuous, and Chinese developers were noticeably absent amid rising geopolitical tension. Yet, beyond the lingering presence of older franchises, it was difficult to discern a coherent vision for the future.
At Sega’s stand, the most eye‑catching attraction was not a brand‑new intellectual property but the upcoming remake of *Persona 4 Golden*. DJs, cosplay performers, and a bustling demo area turned the booth into a party, and the *Persona* demo drew the longest queues.
Square Enix, by contrast, presented just two projects: the climactic finale of its *Final Fantasy VII* remake trilogy, which dominated the space with images of Meteor and Sephiroth, and *Final Fantasy Resonance*, a high‑definition 2‑D title that showcased characters spanning the entire series’ history. Capcom’s area was largely devoted to demo kiosks for the new expansion of *Monster Hunter Wilds*, while also allocating space for Switch 2 ports of classic *Resident Evil* entries and a fresh *Mega Man* game. Among the heavyweight developers, only Bandai Namco and Konami highlighted original releases. Bandai Namco unveiled a new *Gundam* title alongside anime‑tie‑in games and *Ace Combat 8*.
Konami, meanwhile, revealed a reimagined *Castlevania* with a radically different visual style and presented non‑playable showcases for brand‑new IPs such as *Rhapsody in Scarlet* and *Rev:Noir*, as well as a teaser for *Silent Hill Townfall*. Several factors explain this retrospective tilt. TGS takes place in September, a month traditionally filled with major releases, as many publishers aim to avoid clashing with the November launch of *Grand Theft Auto VI*. Even without a playable demo, the event attracted crowds eager to experience the recent Netflix showcase in a haptic‑enhanced theater, a surge amplified by the giveaway of a GTA‑themed PlayStation shirt for attendees.
While those attractions were the most extreme examples, the real draw for "nonstop play" remained familiar franchises, offering scant insight into what gaming might look like thirty years from now. The one technological force that loomed large over the exhibition was generative AI. Developers tout AI as a productivity booster—speeding up coding, generating concept art, and producing small‑scale assets at lower cost.
Critics, however, warn that the same tools could trigger layoffs and dilute the handcrafted quality that players cherish. There is also growing concern that rising hardware prices could transform gaming from a widespread hobby into a niche luxury. If any forward‑looking glimpse emerged on the TGS floor, it was through the lens of AI.
The "Selected Indie 80" showcase—an curated set of indie titles given free demo space—was relocated from the main exhibition hall to a peripheral corridor, making room for an AI technology pavilion. Companies there demonstrated localization services, asset‑generation pipelines, and other AI‑driven solutions. Ironically, the winning indie entry, *Finding Polka*, which also earned accolades at Gamescom and Bitsummit, relied entirely on hand‑drawn sketches for its visuals, underscoring the tension between AI hype and traditional artistry.
Japan’s embrace of generative AI appears stronger than in many other regions. A preliminary excerpt from the upcoming 2026 Computer Entertainment Supplier's Association (CESA) report, released to the press on opening day, indicated that 86 % of Japanese developers reported using some form of AI in their workflow—a sharp rise from 51 % the previous year. Several games on display featured AI‑generated assets in promotional material or in‑game visuals.
Level‑5, in particular, has been outspoken about its AI experiments. The studio has publicly discussed employing AI for concept art and promotional imagery since 2023, and CEO Akihiro Hino frequently references these efforts on social media. Ahead of TGS, Level‑5 unveiled a slate of upcoming projects that drew intense scrutiny for their heavy AI usage. In the presentation, AI‑generated avatars of Hino himself delivered “talking‑head” introductions, and AI‑crafted imagery appeared in trailers for *Holy Horror Mansion* (a new entry in 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 craftsmanship behind the booth’s design, and pledged to revise the studio’s AI policies. On the exhibition floor, the AI influence was evident in demos for *Holy Horror Mansion* and *Decapolice* (which showed a markedly more polished look compared to its 2023 preview). Nonetheless, Level‑5 asserted that any AI‑generated assets were stripped from the playable builds, attempting to balance innovation with player expectations.
The episode highlighted a broader anxiety within the community: that AI could reshape not only production pipelines but also the very aesthetic and cultural identity of games. Amid these concerns, a more optimistic trajectory for the industry also surfaced. Japan’s entertainment ecosystem has long relied on a multimedia strategy and the production‑committee model, a practice dating back to the 1970s when Kadokawa pioneered collaborative financing for films.
Under this system, multiple companies pool resources, share risk, and retain rights across various media formats—games, movies, merchandise, and more. This approach encourages cross‑pollination of ideas and provides a safety net for experimental projects.
The model is now spilling into gaming. Convenience‑store chain Lawson, for example, routinely backs new films in exchange for promotional opportunities within its stores. Gaming is beginning to enjoy similar partnerships. *Exit 8*, an indie title that became one of Japan’s top‑grossing films in 2025, originated as a video game before transitioning to the big screen.
Sega recently announced that it is looking to emulate Disney’s multimedia strategy, leveraging its iconic properties such as *Sonic the Hedgehog* and *Angry Birds* across films, fashion collaborations (including a recent partnership with Balenciaga), and even theme‑park attractions. The company also revealed Netflix adaptations of upcoming games like *Crazy Taxi* and *Stranger Than Heaven* before the titles have been released. Indie publishing is also evolving.
Shueisha Games has articulated a mission to fund distinctive projects while using its extensive publishing expertise to amplify successful titles beyond the screen—into manga, novels, merchandise, and even alternate‑reality games. *Urban Myth Dissolution Center*, a best‑selling indie from last year, has already spawned manga adaptations, novelizations, a line of collectibles, and an alternate‑reality game created by the escape‑room group SCRAP. The studio recently teamed up with *Silent Hill* to produce new merchandise and a free browser spin‑off.
Other non‑traditional players are joining the fray. Toei Games, historically a film studio, is venturing into game development to nurture new IPs that can be expanded across media.
Parco Games, founded by the nationwide department‑store chain Parco, aims to support art‑driven indie titles and showcase them in its retail locations through clothing lines and gallery exhibitions. T‑shirts for games such as *Berlin Apartment* were on display at this year’s show, illustrating the blending of fashion and interactive entertainment. In sum, the future of Japanese gaming extends far beyond the confines of Makuhari Messe.
It will be shaped by how the industry monetizes its legacy, how it integrates AI tools from global tech firms, and how games migrate onto cinema screens, fashion runways, and other cultural arenas. The next edition of TGS hopes to finally deliver a full five‑day schedule without weather‑related interruptions, offering a fresh platform to showcase where play will head in the coming decades. Yet many of the most decisive developments—AI policy decisions, cross‑media collaborations, and new financing models—are likely to unfold far from the exhibition halls, in boardrooms, studios, and online communities worldwide.