Pixel P&L: xAI Plans AI-Generated Video Game by Late 2026

Welcome to another Pixel P&L edition. This issue takes 5 minutes to read. If you only have one, here are the 5 most important things:

• Elon Musk's xAI plans to release an entirely AI-generated video game by late 2026.

• Microsoft pauses Xbox Game Pass price hikes in India and select markets, offering temporary relief to existing subscribers.

• Roblox game 'Steal a Brainrot' shatters records with 25.4 million concurrent players, eclipsing Fortnite's peak.

• The U.S. Supreme Court denied Google's request to block Play Store overhaul, forcing major changes to app distribution and payments.

• Women comprise nearly half of the global gaming population, according to a new industry report. 

Let's get into it.

Musk's xAI Targets AI-Generated Video Game by 2026

Elon Musk's artificial-intelligence startup xAI plans to release an AI-generated video game by late 2026, testing whether machine learning can handle the creative and technical complexities of game development.

The project would rely entirely on xAI's Grok chatbot for design, mechanics and storytelling. Musk announced the initiative on X, positioning it as a showcase for Grok's capabilities following October's launch of Grok Imagine Version 0.9, which enhanced the AI's ability to generate multimedia content.

The aggressive 12-month timeline has sparked industry skepticism. Early AI-generated footage has drawn criticism for appearing crude, with developers noting that even simple games typically require years of polish.

xAI is hiring "video game tutors" in Palo Alto at $45 to $100 hourly to train Grok in design principles and narrative structure. While Musk's history of defying doubters, particularly with SpaceX, tempers some concerns, the venture represents a bold test of AI's creative limits in an industry traditionally dependent on human expertise.

Microsoft Pauses Xbox Game Pass Price Hikes in India, Other Markets

Microsoft is delaying planned price increases for Xbox Game Pass Ultimate subscriptions in India and several other countries, offering temporary relief to existing customers facing steep cost jumps.

Customers in India, Germany, Ireland, South Korea and Poland will continue paying current rates if they maintain auto-recurring plans, according to emails reviewed by The Verge. New subscribers in those markets will face higher prices immediately, and existing users who cancel and resubscribe will pay the new rates.

The pause follows Microsoft's announcement earlier this month that Xbox Game Pass Ultimate would jump from $19.99 to $29.99 monthly in the U.S., a 50% increase. The company said it was "adding more value to these plans" to justify the pricing change.

Kari Perez, head of Xbox communications, said the pricing update "remains unchanged" outside the exempted countries and pledged to notify users at least 60 days before adjustments take effect. The decision to pause increases in India aligns with local regulatory requirements. Microsoft also raised Xbox Series X and S console prices twice this year.

⚡️Quick Bytes

Nazara's Fusebox Games to Launch 'The Traitors' Mobile Game in 2026

Nazara Technologies subsidiary Fusebox Games acquired worldwide interactive rights to reality show "The Traitors," planning a 2026 mobile launch. The UK studio, known for "Love Island: The Game," will bring the psychological competition's deception and strategy gameplay to iOS and Android devices globally.

Women Comprise Nearly Half of Global Gaming Population, Industry Report Finds

Women account for just under half of gamers worldwide, according to the Entertainment Software Association's 2025 Global Power of Play report. The study, compiled with trade groups across six continents, surveyed 24,216 weekly players over age 16 in 21 countries through research firm AudienceNet.

Roblox Game 'Steal a Brainrot' Sets Industry Record With 25.4 Million Concurrent Players

Roblox title "Steal a Brainrot" reached 25.4 million concurrent users, surpassing any single game in industry history. The milestone eclipses Fortnite's 15.3 million peak from 2020 and dethrones fellow Roblox game "Grow a Garden," which held the previous record at 22.4 million. The surge helped push Roblox's platform-wide concurrent users to 47.4 million in August.

U.S. Supreme Court Declines to Block Google Play Store Overhaul Order

The U.S. Supreme Court rejected Google's request to pause an injunction from Epic Games' antitrust lawsuit requiring changes to its Play Store. Starting October 22, developers can direct users to external payment systems without Google's fees. The ruling also mandates Google allow rival app stores access to its catalog by July 2026, though Google plans to petition the court by October 27.

⚔️Side Quest

🤣Laugh:

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🎮 Play: Noita throws you into a physics-driven roguelike where every pixel matters and death comes fast. What starts as punishing randomness evolves into creative freedom as you craft absurdly powerful wand combinations and uncover community-driven secrets. The simulation can buckle under your giga-nuke creations, but that's part of the charm. Cheap, deep, and endlessly replayable for those who love systems that reveal complexity through experimentation.

📚 Read:  After 28 years of RTS hits and industry turbulence, Relic's CEO Justin Dowdeswell reveals how the studio is navigating independence. Learn why Company of Heroes 3's rocky launch and Sega's sale forced a reset, how the team is cutting development cycles without sacrificing quality, and why being small might be Relic's biggest advantage in today's unpredictable market.

💡Did You Know

The Pokemon Trading Card Game once featured a Happy Birthday Pikachu card with the move "Birthday Surprise" that dealt extra damage if played on your actual birthday. The mechanic seemed harmless until competitive players discovered an exploit: simply lie about your birth date to gain an unfair advantage. Tournament organizers faced the impossible task of verifying birthdates for every match, leading to the card's ban from competitive play. 

📜 Quote of the Day

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