Epic Games Delays Disney Collaboration, Shifts to AI-Driven Development

Epic Games has announced a delay for its anticipated shooter game featuring iconic characters from Disney’s Marvel and Star Wars franchises. Initially scheduled for release in March, no new launch date has been provided as the company transitions its development strategy towards an AI-first approach.

Transition to AI Development

Reported by Bloomberg, sources familiar with the project indicate that developers have been instructed to utilize AI tools, including Anthropic’s Claude, to assist in game creation. According to an internal communication viewed by Bloomberg, a director expressed a decisive shift in development methodology, stating: “No more hand-written code.” Furthermore, all artistic content for the game is expected to be produced using comprehensive AI workflows.

Internal Response and Project Status

The directive to accelerate AI usage was communicated to team members during a video call last week, leaving some developers reportedly “stunned” by the company’s sudden pivot. Additionally, sources indicated that the project has experienced setbacks, attributed in part to Epic’s miscalculations regarding necessary staffing and timelines.

Company Statements and Strategic Moves

Jake Jones, Epic’s communications director, confirmed the shift in strategy, affirming the company’s commitment to “AI-accelerated development, led by Epic developers who are the visionaries and creative drivers for everything we do.” As interest in AI grows, it is notable that no other major game studio has yet undertaken a project primarily driven by artificial intelligence.

Partnership with Disney

This collaboration follows a significant investment from Disney, amounting to $1.5 billion in 2024, alongside an equity partnership aimed at multiple game projects. The upcoming shooter is expected to be the first release stemming from this partnership.

Industry Implications

With the gaming industry increasingly turning towards AI, a survey conducted during the 2026 Game Developers Conference revealed that over one-third of game developers currently implement AI in their processes. However, more than half of those surveyed expressed concerns regarding its detrimental impact on the industry.

Recent Developments

In related news, Yuji Horii, the esteemed creator of the Dragon Quest series, recently showcased the potential of AI in game development by creating a new title in just 30 minutes. This highlights the emerging intersection of AI technology and game design.