Epic Games delays Disney game and tells developers to go “AI first”

by John Garrett
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Epic Games has decided to postpone its highly anticipated Disney collaboration, a shooter game that will feature iconic characters from the Marvel and Star Wars franchises. The developers have been instructed to transition to an “AI first” production approach.

As reported by Bloomberg, the game was originally set for release in March, but a new launch date has not been announced yet.

Sources familiar with the project revealed that the development team has been asked to utilize AI tools, such as Anthropic’s Claude, with supervision from the staff. The game’s director conveyed in an internal message, as seen by Bloomberg, that all coding should now be done using AI tools, and the artwork will be generated through AI workflows.

In a statement to Bloomberg, Epic communications director Jake Jones mentioned that the company is embracing AI-accelerated development, with Epic developers leading the way as visionaries and creative influencers in all their endeavors. Disney has not responded immediately to Bloomberg’s request for comment.

During a video call last week, developers were informed of the shift, leaving some of them “stunned” according to sources cited by Bloomberg. The same sources noted that the project had experienced delays, partly due to underestimated staffing and time requirements. Bloomberg highlighted that Epic had been promoting AI integration across its divisions and that no other major game developer had attempted to create a game primarily using AI.

In 2024, Disney made a $1.5 billion investment in Epic and acquired an equity stake, leading to a partnership announcement covering multiple games, with the shooter game being the first. Epic had previously announced job cuts of 1,000 employees in March, citing decreased engagement in Fortnite as a contributing factor.

A survey conducted during the 2026 GDC revealed that over a third of game developers incorporate AI in their projects, while more than half believe it could have detrimental effects on the industry.

Today, it was reported that Yuji Horii, the mastermind behind Dragon Quest, successfully developed a new game using AI within a mere 30 minutes.

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