Epic Games Pivots to “AI-First” Development and Delays Disney Project

Epic Games Delays Disney Project and Shifts to AI-First Development

Epic Games has delayed an upcoming video game collaboration with the Walt Disney Co. and instructed its developers to adopt an “AI-first” production model, according to a report from Bloomberg. The title, a Marvel- and Star Wars-themed shooter stemming from a $1.5 billion Disney investment announced in early 2024, had been slated for release in March 2027. Developers were informed of the delay and the strategic shift during a video call, leaving some staff stunned, Bloomberg reported.

Tim Sweeney Confirms Huge Pivot for Unreal Engine Maker

Following the initial reports, Epic Games founder and CEO Tim Sweeney confirmed the strategic shift on social media. Writing on X, Sweeney stated that the Fortnite maker has a “huge pivot underway” to retool developer teams for maximum artificial intelligence acceleration.

“Our job, as the provider of tools and technology to much of the industry, is to design for the present that is and the future that will soon be,” Sweeney wrote. He added that the goal of the transition is to survive the industry revolution and help other creators build better code and content at a faster rate. Sweeney emphasized that the strategy is not intended to execute the same workload with fewer people, but rather to empower staff to produce more content using tools such as Anthropic’s Claude chatbot.

Internal Directives and Production Changes for the Disney Collaboration

According to internal messages viewed by Bloomberg, project directors instructed staff to eliminate handwritten code entirely in favor of AI-written code. Staff were directed to generate all art assets through full AI workflows.

The project fell behind schedule partly because Epic Games misjudged the staffing and time required for the ambitious multi-game partnership. Epic communications director Jake Jones told Bloomberg that the company is “embracing AI-accelerated development, led by Epic developers who are the visionaries and creative drivers for everything we do.” Neither Epic nor Disney has announced a new release date for the postponed shooter.

Industry Context and Previous Workforce Reductions

The pivot arrives six months after Epic Games confirmed layoffs affecting more than 1,000 employees. At that time, CEO Tim Sweeney attributed the job cuts to a downturn in engagement for its flagship title, Fortnite, rather than artificial intelligence integration.

The broader creative sector has experienced intense debate regarding automated workflows. In 2025, actor union Sag-Aftra filed a complaint concerning the use of AI to recreate the voice of Star Wars villain Darth Vader in Fortnite, as reported by the BBC. Meanwhile, a 2026 Game Developers Conference (GDC) survey indicated that more than a third of game developers use AI in their daily work, while over half believe the technology is harmful to the industry at large.