Home Elon Musk wants to start a gaming studio with xAI

Elon Musk wants to start a gaming studio with xAI

TLDR

  • Elon Musk proposes xAI studio to create games, criticizing corporate control of gaming studios.
  • AI tools are rising in game development, sparking debate over innovation versus job risks.
  • Gaming faces layoffs and struggles with new hits as giants like Sony and Microsoft adapt strategies.

Elon Musk has taken to X to claim that xAI, his artificial intelligence company, will “start an AI game studio to make games great again!” Musk states that “too many games studios” are “owned by massive corporations.”

It is unclear if xAI will go through with Musk’s proposed idea. However, generative AI has already seen a rise in use in the gaming development space. Activision-Blizzard, makers of World of Warcraft and Call of Duty have already been found to use it in recent purchasable skins and icons.

A generated version of Minecraft has also made the rounds, and coding potential through language models like Claude 3.5 has taken some developers by storm. However, AI sentiment amongst those in the gaming industry has been negative as jobs could be put at risk.

The comments are responding to a post by the creator of Dogecoin. In the post, they state that they “don’t understand how game developers and game journalism got so ideologically captured” and that players can “tell when someone is an outsider poser”. Musk has been vocal about his opposition to more left-leaning entities, like games studios.

Musk responded to another post, which questioned DEI. Portions of the audience have also gotten themselves into a fervor over “DEI” (Diversity, Equity, and Inclusion) after discovering consultancy services and pledges from companies to be more inclusive.

These have been used by bad actors trying to whip up negative sentiment amongst minority developers and games with inclusive casts of characters.

Musk recently railed against Avowed, a new game from Obsidian. The screenshot shows pronouns for the character.

The user it stems from is Mark Kern, who worked at Blizzard. Since then, he has launched shuttered MMO Firefall and is embroiled in controversy surrounding the fundraising for his current game.

On Bluesky, an X competitor, Obsidian’s art director for Avowed, Matt Hansen, claims that “I wanted so badly to make him mad with my game, and I cannot believe it actually happened.”

The official xAI website hasn’t posted anything about game development, and Musk has made no direct allusions about what he wants developed.

Musk proposes xAI made game as gaming tackles its future

These comments also come as gaming wrestles with its future. While gaming sales have never been bigger, this year has seen companies worldwide slash staff in mass layoffs. Netflix recently shut down its gaming studio before it had even shipped a game.

On top of this, major corporations like Sony and Microsoft currently find their PlayStation and Xbox brands trying to find their next big success.

Sony is partially pivoting from its live service gaming pivot, as multiplayer shooter Concord was pulled down in a matter of two weeks. While some fans have claimed its inclusive nature was the issue, it is primarily due to the industry’s saturation of free online games as companies try to topple powerhouses like Fortnite.

Microsoft’s Xbox brand, despite purchasing a large number of companies since the launch of Game Pass, its subscription service, has struggled to put out a huge success. It has also seen console sales drop dramatically.

Outside of Call of Duty: Black Ops 6 – in development way before Microsoft bought Activision – and the upcoming Indiana Jones game, Xbox games in 2024 have been missing or plagued with issues.

Xbox’s latest major release, Microsoft Flight Simulator 2024, has been lambasted for its glitchy performance as it adopts new streaming technologies. Stalker 2, a timed-exclusive and Game Pass title, has also been slammed for its buggy state.

Featured image: Wikicommons, NARA

About ReadWrite’s Editorial Process

The ReadWrite Editorial policy involves closely monitoring the tech industry for major developments, new product launches, AI breakthroughs, video game releases and other newsworthy events. Editors assign relevant stories to staff writers or freelance contributors with expertise in each particular topic area. Before publication, articles go through a rigorous round of editing for accuracy, clarity, and to ensure adherence to ReadWrite's style guidelines.

Joel Loynds
Tech Journalist

Joel Loynd’s obsession with uncovering bad games and even worse hardware so you don’t have to has led him on this path. Since the age of six, he’s been poking at awful games and oddities from his ever-expanding Steam library. He’s been writing about video games since 2008, writing for sites such as WePC and PC Guide, as well as covering gaming for Scan Computers, More recently Joel was Dexerto’s E-Commerce and Deputy Tech Editor, delving deep into the exploding handheld market and covering the weird and wonderful world of the latest tech.

Get the biggest tech headlines of the day delivered to your inbox

    By signing up, you agree to our Terms and Privacy Policy. Unsubscribe anytime.

    Tech News

    Explore the latest in tech with our Tech News. We cut through the noise for concise, relevant updates, keeping you informed about the rapidly evolving tech landscape with curated content that separates signal from noise.

    In-Depth Tech Stories

    Explore tech impact in In-Depth Stories. Narrative data journalism offers comprehensive analyses, revealing stories behind data. Understand industry trends for a deeper perspective on tech's intricate relationships with society.

    Expert Reviews

    Empower decisions with Expert Reviews, merging industry expertise and insightful analysis. Delve into tech intricacies, get the best deals, and stay ahead with our trustworthy guide to navigating the ever-changing tech market.