Tesla and SpaceX CEO Elon Musk has announced that his artificial intelligence startup, xAI, will start an AI-driven game studio.

What Happened: On Wednesday, Musk responded to a user on X, formerly Twitter, who shared concern that some modern game studios prioritize profit over player engagement and creativity.

In response, Musk made the announcement challenging the dominance of large, corporate-owned game studios by focusing on creativity and innovation, and "make games great again."

Musk has long expressed his love for video games, often sharing his thoughts on Twitter. His passion dates back to when, at 12, he sold a game he developed for $500.

Over the years, he's praised titles like Elden Ring from Japanese studio FromSoftware and Diablo IV from Microsoft Corporation's (NASDAQ:MSFT) Blizzard.

According to his biography by Walter Isaacson, Musk was also a fan of the strategy game Polytopia, where he once beat the game's creator, Felix Ekenstam. Tesla's Cybertruck even debuted in Fortnite and Rocket League, games from Epic Games and Psyonix, respectively.

Subscribe to the Benzinga Tech Trends newsletter to get all the latest tech developments delivered to your inbox.

Several game studios are owned by large corporations: Activision Blizzard, now a subsidiary of Microsoft Gaming, has notable titles such as Call of Duty, World of Warcraft, Diablo, and Overwatch. The company was acquired by Microsoft in October 2023 for $75 billion. In 2022, it reported a revenue of $7.52 billion, a decline from $8.80 billion in 2021.

Another American video game company is Electronic Arts Inc. (NASDAQ:EA), known for its sports and actions with notable titles such as FIFA, Madden NFL, and The Sims.

Last month, EA announced second-quarter net revenues of $2.025 billion, slightly below the expected $2.037 billion. However, their earnings per share (EPS) of $1.11 surpassed the forecasted $0.88.

Take-Two Interactive (NASDAQ:TTWO) has titles like Grand Theft Auto and NBA 2K under its belt. It also has several successful labels including Rockstar Games and 2K.

Earlier this month, TTWO reported another solid quarter, driven by record performances from its key titles and growth in subscription services. The company's net bookings reached $1.47 billion, a slight increase from the previous year, while net revenue rose by 4% to $1.35 billion.

Check out more of Benzinga's Consumer Tech coverage by following this link.

• 'Too Many MBAs Running Companies,' Elon Musk Once Claimed, Encouraging More Time On Creating 'Amazing' Products

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.