Video games as art have never really taken off. I suppose that if I were to create a video game with the aim of making it art then I would want to focus on the somewhat peculiar ability of video games to educate the senses and tastes. Namely I would create a fighting game in the vein of either Street Fighter or Soul Calibur that was about poets beating the shit out of one another and quoting poetry as they employed mystic techniques of ass kicking. James Joyce would obviously feature heavily in this because there are extant photographs of him with an eye-patch, and as we all know, this makes him close enough to a pirate to be awesome in any context. Although I have not read Finnegan's Wake, I am sure he could be made to speak lines from it regarding something violent or brimstone like. Homer is also an obvious candidate because he could channel the muses into a terrific assbeating. Sylvia Plath would probably turn over in her grave since there's basically no way to include her without dramatically increasing her bust size and making her look like a punk rock fan. Robert Frost could be a sort of wanderer who disembarks from his horse prior to every physical confrontation and channels the elements against his foes. I would dress Emily Dickenson in funeral garb and allow her to command the manifestations of death himself.
In short it would be quite spectacular.