Epic Games Delays Disney Shooter as It Shifts to AI-First Development

Epic Games has reportedly delayed an upcoming video game developed in partnership with The Walt Disney Company as it moves towards an artificial intelligence-first production strategy. According to a Bloomberg report published on October 12, 2026, the game had originally been scheduled for release in March 2027, but its launch has now been postponed indefinitely, with no replacement date announced. The project is expected to feature characters from Marvel and Star Wars in a shooter-style game. The delay comes as Epic attempts to accelerate development and address problems that reportedly left the project behind schedule. The company is now encouraging developers to use AI tools to complete more of the work, marking a significant change in how the game is expected to be produced.

Under the reported plan, Epic developers have been instructed to adopt an AI-first workflow that uses tools such as Anthropic’s Claude to assist with software development and creative production. An internal message reviewed by Bloomberg reportedly instructed developers to stop writing code manually, while artwork would be produced through AI-driven workflows. Human employees would continue to guide the process, supervise the tools and shape the final product. Epic says its intention is to embrace AI-accelerated development while keeping its developers responsible for the creative direction. The approach reflects a growing industry trend in which AI systems are being used to generate code, produce visual assets and automate repetitive production tasks. However, the extent to which AI will handle the final game remains a key question.

The decision reportedly surprised some employees, with concerns raised about the reliability and quality of AI-generated work. Developers questioned how errors would be identified and corrected if AI systems produced faulty code or unsuitable artwork. Although AI coding assistants can generate software quickly, their output may contain bugs, security vulnerabilities or architectural problems that require experienced engineers to review. Generative art tools also present challenges involving visual consistency, creative control and the integration of assets into a complex game environment. A large commercial video game must combine gameplay mechanics, animation, sound, performance optimisation and quality assurance. Epic will therefore need effective testing and review processes if it intends to depend heavily on AI without compromising the final experience.

The project is part of a major partnership announced in February 2024, when Disney revealed plans to invest $1.5 billion in Epic Games and collaborate on an expansive entertainment universe connected to Fortnite. The wider initiative was intended to bring Disney, Pixar, Marvel, Star Wars and Avatar experiences into an interconnected digital environment where users could play, create, watch and interact with entertainment content. The delayed shooter is one component of that broader relationship. Its development difficulties are particularly significant because the partnership represents a substantial strategic investment for both companies. Epic has also faced financial and operational pressure following its announcement in March 2026 that it would cut approximately 1,000 jobs amid slower growth and challenges involving Fortnite.

Epic’s decision could become an important test of whether AI-first development can improve the speed and efficiency of producing large-scale video games. Supporters argue that AI can help smaller teams accomplish more, reduce repetitive work and allow developers to focus on design and creative decisions. Critics, however, warn that excessive reliance on generated content could affect artistic quality, employment and the originality of games. These concerns are especially relevant for a project involving globally recognised franchises such as Marvel and Star Wars, where audiences have high expectations. Epic has described its strategy as AI-accelerated development led by human creators, while CEO Tim Sweeney has argued that AI should enable teams to build more and better products. Whether the new workflow succeeds will ultimately depend on the game’s quality, its eventual release and the response from players.