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The reality in which you can create your own video game has already arrived, and, like many other changes brought about by AI, it threatens to transform the $300 billion industry. While there are still limitations on what AI can create, the situation is changing every week, and gamers are optimistic that this is just the beginning.
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“If something is kind of possible today, in a year, it’s going to be nailed,” said Matt Shumer, an AI investor and video game developer.
These reflections were prompted by a new trend. Gamers on Twitter are posting videos of game demos created using large language models (LLMs), many of which resemble popular shooters like Call of Duty and Counter-Strike. Many creators note that they used Claude Opus 5 or DeepSeek with specific prompts to create these games. The result is a series of games given playful names like Modern Claudefare or Claude of Duty.
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But there are also more laid-back games – for example, ones about snowboarding, boat racing, dungeon exploration, and Animal Crossing-style games. Someone even created a demo version of a Spider-Man game.
Many of these AI-generated games are linked to the Gauntlet Loop – a workflow for generating prompts that Schumer has developed over the past few weeks. He hosts many of these playable games on his website. Of course, these games have certain limitations. That is, modern models are only capable of creating remakes of existing games, since they rely on historical data – such as YouTube videos of old games – to generate levels and maps. But to create something completely new and original, it may require a large number of prompts and a great deal of interaction with AI models.
This is significantly different from how games are typically created. Developing a modern AAA game can take years and the work of hundreds of developers, and supporting it requires millions of dollars. Creators who build games using AI don’t have the resources that large studios possess, so such projects aren’t on the same scale as, for example, Grand Theft Auto VI from Rockstar Games, a subsidiary of Take-Two Interactive.
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The trend of creating games using AI prompts is unfolding against the backdrop of an existential crisis in the industry that is threatening workflows and development. The hiring boom during the pandemic has led to the numerous layoffs seen recently. Many game studios are looking for ways to cut costs, which has led companies to sell off smaller studios and reduce expenses wherever possible.
Shumer predicts that eventually, AI will be able to create full-fledged games just as quickly as it creates websites. And then we’ll see a future in which a small team of independent creators can build something as massive as GTA VI by managing their own agents. So companies may eventually turn to developers in search of the next big hit.
“In a couple of years, you can imagine somebody with an incredible game idea can go to Rockstar and be like, ‘Would you fund the development of this? Here’s my idea.’ And then Rockstar funds them with the tokens to go and do it,” added Matt Shumer.
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