Epic Games Delays Disney Game, Shifts to AI-First Model

Epic Games has delayed its upcoming Marvel and Star Wars-themed shooter collaboration with The Walt Disney Company, directing development teams to adopt an "AI first" production framework utilizing tools like Anthropic's Claude. The scheduling setback marks a shift for the privately held game studio, which is restructuring major project pipelines around automated workflows rather than traditional human coding.

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

Internal Directives and Production Changes

Internal communications reviewed by the Los Angeles Times detail a directive instructing staff to move away from legacy methods for the Disney-franchised shooter.

"No more hand-written code," one of the game’s directors told staff in an internal message, adding that all art for the game would be “generated with full AI workflows.”

The pivot arrives as Epic works to stabilize development timelines following a reduction of 1,000 jobs in March, a cut attributed in part to decelerating sales for its flagship title, Fortnite. Progress on the multi-game Disney collaboration had lagged behind initial internal expectations prior to the restructuring.

Context of the Disney Partnership

The shooter project serves as the anchor for a broader alliance between the two entertainment giants. In 2024, The Walt Disney Company invested $1.5 billion into Epic Games to secure an equity stake, pairing the capital infusion with plans to build persistent games and entertainment universes using Epic's Unreal Engine.

What the Shift Means for Game Development

The integration of automated generation tools across major commercial game development represents an unprecedented structural change for AAA titles. By mandating generative workflows for both code and visual assets, Epic is attempting to alter the cost and timeline economics of high-end game production, though the strategy introduces new questions regarding intellectual property, asset quality, and staffing structures across the industry.