Epic Games Delays Disney Shooter, Shifts to AI-First Development

Epic Games has reportedly postponed the launch of its upcoming Disney multiplayer shooter as the Fortnite developer adopts an artificial intelligence-driven approach to game production, according to Bloomberg.

The highly anticipated collaboration between Epic Games and Walt Disney Company (NYSE: DIS) was initially scheduled for release in March. However, the project currently has no confirmed launch date following a major change in its development strategy.

According to Bloomberg, citing sources familiar with the project, Epic Games has instructed its development teams to prioritize generative AI tools for producing the game's code and artwork. The new strategy reportedly involves using AI systems, including Anthropic's Claude, to handle core development tasks while human employees supervise and review the results.

The decision represents a significant experiment in AI-powered game development, particularly for a major title featuring characters from Disney's Marvel and Star Wars franchises.

Development reportedly encountered setbacks after Epic underestimated the resources and time needed to complete the crossover project. The company now hopes its AI-first production model will accelerate development and improve efficiency.

The reported changes follow a challenging period for Epic Games, which eliminated approximately 1,000 positions in March amid slowing sales growth. The restructuring raised questions about the company's workforce strategy and future development priorities.

The delayed game is also tied to Disney's $1.5 billion investment in Epic Games, announced in 2024. The investment established a strategic partnership aimed at developing interconnected gaming and entertainment experiences using Disney's extensive intellectual property portfolio.

Although Epic management reportedly believes AI technology could strengthen creative productivity, some employees have questioned whether current AI systems can reliably deliver the quality required for a major commercial release.

During a recent internal video conference, developers reportedly expressed concerns about the feasibility of relying heavily on automated workflows.

The move comes as generative AI adoption continues to reshape the gaming industry. Industry surveys suggest more than one-third of game developers already use AI tools, although concerns persist over creative quality, job security, and technological limitations.

For Epic Games and Disney, the delayed shooter could become a significant test of whether AI-first development can deliver complex, high-profile video games without compromising player expectations.