Following Disney’s $1.5 billion investment in early 2024, Epic Games is adopting an AI‑first development model for its Disney partnership, directing AI to write code and guide artwork for an upcoming Marvel/Star Wars shooter.
Internal communications have directed Epic staff to stop writing code by hand and to generate all artwork through full AI workflows, and have instructed developers to use tools such as Anthropic’s Claude to generate code and artwork, with human developers overseeing and managing the AI‑produced output.
The Marvel/Star Wars shooter was originally planned for a Mar. 2027 release. Epic has delayed its release indefinitely as it shifts to AI‑first development and faces slower‑than‑expected progress.
Epic CEO Tim Sweeney said on social media that the company is undergoing a significant pivot to retool developers for full AI acceleration, aiming to let teams build more and better content rather than reduce staff. Epic’s communications director Jake Jones told Bloomberg that the firm is embracing AI‑accelerated development led by Epic developers who remain the visionaries and creative drivers.
Some developers have expressed doubts about how to handle errors introduced by AI‑generated content. They have also questioned whether the AI‑first approach will deliver the expected results. Epic Games laid off about 1,000 employees in Mar. 2026. The layoffs cited weaker Fortnite sales or a downturn in Fortnite engagement as a contributing factor.
Industry surveys show that over a third of game developers currently use AI tools in some way. A majority remain concerned about the long‑term effect of AI on game quality and creative standards.

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