Epic Games Delays Disney Game and Pushes Developers Toward AI-First Production

Epic Games Delays Disney Game and Pushes Developers Toward AI-First Production

Epic Games has delayed an upcoming Disney video game that had been planned for March and is directing developers to use an “AI first” production approach as work continues, according to people familiar with the project. The game, which features characters from Marvel and Star Wars, does not currently have a new release date.

Developers were told to rely more heavily on AI tools, including Anthropic’s Claude, while human staff oversee and guide the output. In an internal message reviewed by Bloomberg, one of the game’s directors told employees, “No more hand-written code,” and said the game’s art would be “generated with full AI workflows.”

Epic has already been encouraging wider AI use across the company, but the Disney project represents a more aggressive application of the technology to game development.

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

The shift surprised some developers working on the title. During a video call last week, some staff questioned how errors in AI-generated work would be handled, including whether Claude would be asked to correct its own mistakes. Others expressed doubt that the approach would deliver the results Epic expects, according to people familiar with the discussion.

The project is part of a broader relationship between Epic and Disney. Disney invested $1.5 billion in Epic in 2024 in exchange for an equity stake, and the companies agreed to work together on multiple games. The shooter was expected to be the first title from that partnership.

Development has moved more slowly than anticipated, according to people familiar with the project. Epic underestimated both the staffing requirements and the amount of time needed to complete the game.

The company has also been dealing with pressure elsewhere in its business. In March, Epic said it was eliminating 1,000 jobs, citing slower Fortnite sales as one of the reasons.

Generative AI remains a divisive issue inside the games industry. Some developers and players have criticized AI-generated content over concerns about quality, while adoption continues to grow. A survey conducted earlier this year found that more than one-third of game developers were already using AI in their work, while more than half said they believed the technology was harmful to the industry.

This analysis is based on reporting from Yahoo Finance courtesy of Bloomberg.

Image courtesy of The Walt Disney Company.

This article was generated with AI assistance and reviewed for accuracy and quality.

Updated Oct 12, 2026

About this article: This article was generated with AI assistance and reviewed by our editorial team to ensure it follows our editorial standards for accuracy and independence. We maintain strict fact-checking protocols and cite all sources.

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