Epic Games has delayed an upcoming game in its $1.5 billion collaboration with Disney and instructed its developers to adopt an "AI first" production model, according to a Bloomberg report by Jason Schreier. Internal messages viewed by Bloomberg state there will be "no more hand-written code," with art assets "generated with full AI workflows."
The project, a Marvel- and Star Wars-themed shooter announced in early 2024 and once slated for March 2027, is now delayed indefinitely. Human developers would manage and guide code and art generated by AI models such as Anthropic's Claude, the report says. Epic CEO Tim Sweeney confirmed a "huge pivot" is underway at the company.
What Epic and Sweeney say about the AI pivot
"We're embracing AI-accelerated development, led by Epic developers who are the visionaries and creative drivers for everything we do," an Epic spokesperson said in a statement. Communications director Jake Jones gave the same statement to Bloomberg.
Sweeney addressed the report directly on social media: "We have a huge pivot underway here at Epic, moving developers around to retool for maximum AI acceleration. The aim isn't to do the same stuff with fewer people, but to enable everyone here to build MORE and BETTER stuff, and to bring the benefits to all teams using Unreal."
Epic Games AI push: context and backlash
Epic has been pushing generative AI tools into Unreal Engine throughout the year, and Sweeney has been publicly bullish on the technology. In a June interview with IGN, he predicted AI would enable "the possibility of infinite dialogue with a really simple setup for creators," with small teams building "immense and interactive worlds." He also said last November that AI usage disclosure tags like Valve's Steam requirements "make no sense" because AI tools "will be involved in nearly all future production."
Not everyone inside the studio welcomed the directive. Engadget reports that sources said the new approach was not universally well-received, with some employees allegedly hoping the request wasn't totally serious. The pivot also follows Epic's layoff of over 1,000 employees in March, which the company attributed to a "downturn in Fortnite engagement."
