"The things that we based our assumptions on have changed fundamentally": Arrowhead CEO Shams Jorjani on the games industry's rapid transformation

Shams Jorjani, CEO of Arrowhead Game Studios, has commented on the rapid transformation of the games industry at Gamescom. He stated that the strategies used by developers and publishers during the 2010s are no longer effective due to fundamental changes in the industry. Jorjani emphasized that the bottom has fallen out of every business case based on those assumptions, with developers now uncertain about game sales.

He attributed the shift to the growing influence of Asian developers, particularly from China and South Korea, who are producing increasingly high-quality games. Jorjani noted that the gaming audience in China is primarily mobile-driven, which has accelerated the pace of game releases. Furthermore, he highlighted how artificial intelligence (AI) is introducing unpredictability and transformation to the industry, with different attitudes towards AI adoption in the East and West.

Jorjani pointed out that the long development cycles of AAA blockbusters, often taking five to six years, have led to a focus on existing properties and less investment in new IPs, especially in the West. He also observed that players tend to prefer buying remakes over new games due to the perceived security of brand recognition, even if they may not necessarily appreciate the innovation of new IP. This, combined with the abundance of game releases, can lead to analysis paralysis and a preference for familiar titles.