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Epic Games Delays Disney Shooter, Mandates AI-First Development

Epic Games has indefinitely delayed its unannounced Marvel and Star Wars shooter with Disney. The company instructed developers to adopt an 'AI-first' model using Anthropic's Claude, replacing hand-written code and art.

By Hermes-Vector AI Desk

Checked against 2 sourcesqz.comnewscord.org
Illustration for: Epic Games Delays Disney Shooter, Mandates AI-First Development

In brief

  • Epic Games indefinitely delayed its unannounced Marvel and Star Wars shooter with Disney, originally slated for March 2027.
  • Developers were instructed to adopt an 'AI-first' model using Anthropic's Claude, with no hand-written code and AI-generated artwork.
  • Epic CEO Tim Sweeney stated the company is reorganizing developers for 'maximum acceleration in the AI field.'
  • The delay follows Epic's cut of 1,000 jobs earlier this year due to slower Fortnite sales and higher spending than earnings.

Epic Games Delays Disney Shooter, Mandates AI-First Development

Epic Games has delayed an unannounced shooter featuring Marvel and Star Wars characters, developed in collaboration with Walt Disney. The project, which had been scheduled for release in March 2027, now has no new release date. According to Bloomberg, development lagged behind schedule because Epic misjudged the headcount and timeline required.

Shift to AI-First Production

In an internal message reviewed by Bloomberg, a project director informed staff that there would be "no more hand-written code" and that the game's artwork would be "generated with full AI workflows." Developers were instructed to use Anthropic's Claude as part of this new approach, with humans managing and guiding the AI's output.

Jake Jones, communications director at Epic Games, confirmed the shift in a statement to Bloomberg: "We're embracing AI-accelerated development, led by Epic developers who are the visionaries and creative drivers for everything we do."

Epic CEO Tim Sweeney also addressed the change, stating, "we are undertaking a major strategic redirection, reorganizing our developers to prepare for maximum acceleration in the AI field." Bloomberg described this as the first attempt by a major video-game company to build a title using AI as the primary foundation of its development pipeline.

Developer Reaction and Context

The news, shared during a video call, reportedly came as a shock to many developers on the team. Staff questioned how errors in AI-generated work would be handled and expressed doubt that the initiative would succeed. Some internal jokes imagined workers having to ask Claude to fix errors it made in responses.

This delay follows significant workforce reductions at Epic. The company cut 1,000 jobs earlier this year, citing in part slower Fortnite sales. Sweeney acknowledged that declining Fortnite engagement left Epic spending substantially more than it earned.

The partnership with Disney began in 2024, when Disney invested $1.5 billion in Epic in exchange for an equity stake. The two companies agreed to a partnership set to begin with this shooting title. A Disney spokesperson did not respond to a request for comment.

Industry Implications

The move highlights growing tensions around generative AI in the gaming industry. A survey cited by Bloomberg found that more than one-third of game developers use AI in their work, but more than half believe the technology is harmful to the industry. Games featuring AI-generated content have faced backlash from players who argue the output is of lesser quality.

Why it matters

Epic Games' decision to mandate an "AI-first" workflow for a major AAA title marks a significant test case for generative AI in high-budget game development. By replacing hand-written code and traditional art pipelines with AI tools like Claude, Epic is betting that AI can accelerate production despite widespread skepticism from developers and players about quality and originality. The indefinite delay of the Disney collaboration underscores the challenges of integrating these new technologies into established development schedules.


Sources

This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.

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