Arrowhead Game Studios Ventures Into New IP With Full Creative Control

Arrowhead Game Studios dives into a new co-op game, leveraging Unreal Engine 5 and self-funding to craft a fresh IP with innovative gameplay and multi-platform reach.

Arrowhead self-funds a new cross-platform co-op action game. TechReviewer

Last Updated: October 17, 2025

Written by Mark Williams

A New Chapter for Arrowhead's Co-Op Legacy

Arrowhead Game Studios, the Swedish team behind the wildly popular Helldivers 2, is stepping into uncharted territory. They're hiring a Senior System Designer to shape a brand-new co-op action game, built from the ground up on Unreal Engine 5. This project marks a pivotal moment for the studio, as they break free from publisher constraints and fund the game entirely themselves. With Helldivers 2 still thriving, having previously reached over 500,000 concurrent players, and with its Xbox release in 2025 expanding its audience, Arrowhead is leveraging their success to explore a fresh intellectual property. This move signals their ambition to blend their signature cooperative gameplay with cutting-edge technology, all while staying true to their player-focused roots.

What makes this project stand out is Arrowhead's commitment to creative control. Unlike their past work with Sony on Helldivers, this game will launch simultaneously on PlayStation, Xbox, Nintendo Switch 2, and PC. By sidestepping exclusivity deals, they aim to bring players together across platforms, reflecting the growing demand for cross-platform play, with 70% of gamers under 19 favoring multiplayer experiences. The shift to Unreal Engine 5 also promises a leap in visual fidelity and gameplay possibilities, setting the stage for a cooperative adventure that could push boundaries in ways Helldivers 2 couldn't.

Unreal Engine 5: A Game-Changing Toolset

Switching from the outdated Autodesk Stingray engine, which evolved from the Bitsquid engine used since Magicka, to Unreal Engine 5 is a bold technical leap. Stingray, discontinued by Autodesk in 2018, forced Arrowhead's engineers to maintain an abandoned engine through sheer ingenuity for Helldivers 2. Their success in delivering a polished experience despite those constraints speaks to their technical prowess. Now, Unreal Engine 5 offers tools like Nanite for hyper-detailed environments and Lumen for dynamic lighting, enabling the team to craft larger, more immersive worlds. These advancements could elevate Arrowhead's chaotic, teamwork-driven battles to new heights, with seamless streaming of massive environments via World Partition.

However, the transition isn't without hurdles. After fifteen years of mastering Stingray, Arrowhead's developers face a steep learning curve with Unreal's complex workflows. The engine's Blueprint scripting system speeds up prototyping, but unoptimized code can bog down performance, especially in multiplayer settings. Other studios behind recent Unreal Engine 5 titles have faced criticism for relying on upscaling tech like DLSS to mask optimization issues. Arrowhead's job listing emphasizes Unreal expertise, suggesting they're building a team to tackle these challenges head-on, ensuring their cooperative gameplay feels as tight and responsive as ever.

Self-Funding: Freedom With Risks

By funding the project themselves, Arrowhead gains freedom to prioritize gameplay over publisher-driven deadlines or monetization demands. Helldivers 2's staggering sales of over fifteen million copies by November 2024 provide the financial muscle to support this venture. This independence allows them to retain full ownership of the new IP, opening doors for sequels or even transmedia projects like comics or films. It also aligns with their philosophy of sustainable growth, as CEO Shams Jorjani has criticized the industry's boom-and-bust cycles that led to over ten thousand layoffs in 2023 alone. By avoiding rapid expansion, Arrowhead aims to maintain team cohesion and avoid the pitfalls of larger competitors like Embracer or Ubisoft.

Yet, self-funding carries significant risks. Without a publisher's safety net, a commercial flop could strain their resources, especially since they're also supporting Helldivers 2 as a forever game, following the RuneScape model of continuous updates. Marketing a new IP in a crowded co-op market, projected to hit $5.3 billion by 2033, demands creative strategies to stand out. Arrowhead's multi-platform approach helps, but securing prominent placement on digital storefronts like Steam or Epic Games Store without publisher backing will test their marketing savvy. Their focus on cosmetic-only microtransactions, as seen in Helldivers 2, could keep players engaged without alienating them with aggressive monetization.

Lessons From Helldivers 2 and RuneScape

Arrowhead's journey with Helldivers 2 offers a blueprint for their new project. Launched in February 2024, the game sold twelve million copies in twelve weeks, becoming PlayStation's fastest-selling title ever. Its 2025 Xbox release expanded its audience, proving the value of multi-platform expansion. A rocky start with server issues and a controversial PSN account mandate sparked a backlash, dropping Steam user scores to 19%. Arrowhead's transparent recovery effort, inspired by No Man's Sky's redemption arc, rebuilt trust, achieving a 94% positive rating. This resilience shows their ability to listen to players, a critical factor for a new IP where community feedback will shape long-term success.

Another case study, Old School RuneScape, informs Arrowhead's live service strategy. Launched in 2013 as a nostalgia-driven version of Jagex's MMO, it maintains over 240,000 concurrent players by respecting player time and avoiding manipulative mechanics. Arrowhead's commitment to Helldivers 2 as a forever game mirrors this approach, prioritizing steady updates over sequels. Both cases highlight the power of community-driven development, but also the challenge of balancing ongoing support with new project demands. Arrowhead must ensure their new game launches with the polish players expect, while maintaining Helldivers 2's momentum, a delicate juggling act few studios manage successfully.

What's Next for Arrowhead's Vision

Arrowhead's new game could take many forms, from a sci-fi epic echoing Helldivers' satirical edge to a fantasy adventure reviving Magicka's chaotic charm. The job listing hints at a focus on core systems, progression loops, and combat that feels distinctly Arrowhead, suggesting four-player co-op battles with emergent gameplay. Unreal Engine 5's tools could enable larger team sizes or dynamic worlds, but the studio's emphasis on player connection will likely remain central. A social hub, similar to Destiny's Tower, could foster community outside missions, a nod to the growing demand for social gaming experiences, with 70% of younger players favoring multiplayer.

Players stand to benefit from Arrowhead's approach. Multi-platform access removes hardware barriers, and their restraint with monetization promises a fair experience. However, a new IP means learning fresh systems, which could alienate some fans expecting Helldivers' familiarity. Technical hiccups from the Unreal transition might also pose risks, as seen in other 2025 titles struggling with optimization. Still, Arrowhead's track record suggests they'll prioritize polish and responsiveness, aiming to deliver a cooperative experience that unites players across ecosystems while pushing the genre forward with innovative mechanics and immersive worlds.