Elon Musk Announces Plan to Launch an AI Video Game Studio to Counter “Massive Corporations”

2024 has been a tumultuous year for the triple-A video game industry as gamers have mostly ignored the big tentpole games this year. From Concord to Dragon Age: The Veilguard, if it was woke it either went broke or is going broke. In response to another X user pointing out the issues with game developers and journalists, businessman Elon Musk announced that xAI would be starting a video game studio.

X user @BillyM2k posted on the platform, talking about the state of the industry and its inability to understand gamers,

“i don’t understand how game developers and game journalism got so ideologically captured

gamers have always been trolls, anti-greedy corporations, anti-bs

gamers have always rejected dumb manipulative bs, and can tell when someone is an outsider poser

why lean into the bs?”

The tweet criticizes the game industry and game journalism’s focus on DEI in video games which has resulted in female video game character designs being less feminine to game translations changing the context or writing of the original game, and injection of trans ideology among other things. 

The CEO of Tesla and X owner Elon Musk replied,

“Too many game studios that are owned by massive corporations. 

@xAI is going to start an AI game studio to make games great again!”

X.AI Corp is a startup company founded by Elon Musk back in March 2023 that focuses on artificial intelligence and is responsible for the creation of AI chatbot GROK. While Musk didn’t go into further details, such as to how much AI’s role would be in the development of these games, response to this announcement was swift, with many voicing support for the venture. 

Former video game executive Mark “Grummz” Kern voiced support for the announcement stating,

“It’s time. AA games are outperforming AAA bloat this year by an order of magnitude.

AAA budgets of these massive corporate games are unsustainable. 8-12 studios spread out over the world to make one game is hugely inefficient. Mythical Man Month on steroids. 300M – 1B dollar budgets competing for 5-10 slots a year between success and failure.

High risk means no new ideas and the same recycled slop.

They are already collapsing. Meanwhile AA studios with 40-70M budgets are delivering 5-10x returns and taking all the top sale slots this year.”

While an AI-powered game studio could effectively cut production time to a fraction of what game developers spend on their games, the quality of such a product would be in question. Prompting the question to be asked, “is AI the future of gaming?

Quality of AI-developed games would be dependent on if AI is used in a supportive role rather than the main method for developing a game. However, with such an announcement, coupled with Donald Trump’s victory in the 2024 Presidential Elections, the video game industry is being forced to reconsider its current path. Meanwhile, gamers will have to wait and see how the big game developers and publishers react to Musk’s announcement.

 

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