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Epic Games delays Disney shooter and orders AI‑first development

The delay comes after Disney’s $1.5 billion investment in Epic in 2024 and a March 2026 layoff of over 1,000 staff.

https://quarterstack.online/industry-business/epic-games-delays-disney-shooter-ai-first/

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Key facts

  • Epic Games postponed its upcoming Disney collaboration shooter that features Marvel and Star Wars characters.
  • The shooter was initially planned for a March release but no new launch date has been set after the delay.
  • Epic instructed its development teams to adopt an AI first workflow, using tools such as Anthropic's Claude and ceasing hand‑written code.
  • An internal director’s message told staff there would be no more hand‑written code and that all game art should be produced with full AI workflows.

Epic Games postponed its upcoming Disney collaboration shooter, initially slated for a March release, and told developers to adopt an AI‑first workflow in internal communications.

The shooter was initially planned for a March release but no new launch date has been set after the delay. Epic instructed its development teams to adopt an AI first workflow, using tools such as Anthropic’s Claude and ceasing hand‑written code.

An internal director’s message told staff there would be no more handwritten code and that teams should produce all game art with full AI workflows. Epic’s communications director Jake Jones said the company is embracing AI‑accelerated development led by its developers. CEO Tim Sweeney described a major pivot toward AI acceleration, saying the goal is to let teams build more and better content rather than reduce headcount. Disney invested $1.5 billion in Epic Games in 2024 and obtained an equity stake, forming a multi‑game partnership.

Epic announced the partnership, with the Marvel‑Star Wars shooter slated as the first title under the agreement. In Mar. 2026 Epic laid off over 1,000 employees, citing declining Fortnite engagement and financial pressure. A 2026 GDC survey found that more than one‑third of game developers use AI in their work, while over half view AI as harmful to the industry. Epic has applied generative AI in Fortnite, including an AI‑voiced Darth Vader and AI voices for dozens of character skins.

Epic is among the first major publishers attempting to create a triple‑A game primarily using AI tools, as noted by Bloomberg’s observation that no other major company has tried such an approach. Industry concerns about plagiarism and output quality have made generative AI a contentious topic, with developers citing backlash and quality worries while seeking cost and speed benefits.

"No more hand-written code."

a game director, GamesIndustry.biz

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