Epic Games is making a major change to its game development process, directing employees working on a Disney collaboration to use artificial intelligence to produce code and artwork. The shift affects an upcoming multiplayer shooter featuring Marvel and Star Wars characters, which has reportedly been delayed beyond its planned March 2027 release.
The new development strategy places AI tools at the center of production while human employees oversee the results. The directive represents a significant change for the company behind Fortnite and Unreal Engine, two influential products in the video game industry.
The decision was reported Monday, October 12, 2026, as Epic continued expanding its investment in generative AI technology. Although company executives have confirmed a broader effort to accelerate development through AI, the specific instructions for the Disney project were described by employees and people familiar with internal discussions.
Epic Directs Developers to Use AI for Code and Artwork
The reported changes go beyond using artificial intelligence to assist programmers with routine assignments.
Bloomberg reported that developers working on the Disney shooter were instructed to adopt an AI-first production model using systems such as Anthropic's Claude. Instead of relying primarily on manually written code, employees would direct AI tools to generate programming work and then review and manage the results.
One game director reportedly told employees that handwritten code would no longer be part of the development process. The same instructions called for artwork to be produced through AI-based workflows.
This approach could substantially change the responsibilities of programmers, artists and other development staff.
Traditional game production involves artists creating characters and environments while programmers write and test the software that controls gameplay. AI-assisted development can automate portions of those activities, allowing workers to concentrate on instructions, corrections and testing.
The reported Epic directive would take that approach considerably further by making AI-generated work the default rather than an optional tool.
However, Epic has not publicly released the complete internal instructions. The available reporting does not establish whether every stage of production will ultimately follow the directive without exceptions.
Disney Shooter Delayed Without a New Release Date
The development changes come as Epic's Disney collaboration faces scheduling problems.
The planned multiplayer shooter was reportedly expected to arrive in March 2027. That internal target has been postponed, and the company has not announced a replacement date.
The game has not received a full public reveal, leaving important details about its gameplay, characters and eventual release uncertain.
According to the Bloomberg account, development was already progressing more slowly than expected, with staffing levels contributing to the difficulties.
The AI-first directive arrived during that period of uncertainty. It is not established that the new technology strategy alone caused the postponement.
Introducing an unfamiliar production system can require changes to schedules, employee responsibilities and quality-control procedures. Teams may also need time to develop reliable methods for checking AI-generated code and artwork.
For a multiplayer shooter, those requirements can be particularly demanding.
Developers must ensure that movement, weapons, character abilities and network connections work consistently. Unexpected software behavior can affect competitive balance and create technical problems across large numbers of players.
Artwork also must satisfy performance requirements while remaining consistent with the visual standards established for the game.
Those challenges help explain why changing production methods does not automatically guarantee faster development.
Epic Defends Its AI Strategy
Epic Games has publicly supported the use of AI to accelerate development, while emphasizing that employees will continue directing the creative process.
A company spokesperson said developers would remain responsible for the vision and creative decisions behind the company's projects.
Epic CEO Tim Sweeney also addressed the restructuring on social media, confirming that the company was moving employees between teams to make greater use of AI technology.
Sweeney said the objective was to increase what developers could accomplish rather than simply complete existing assignments with fewer workers.
His comments presented the changes as an opportunity to expand productivity and give development teams additional capabilities.
That position differs from concerns raised by employees who fear that widespread automation could reduce demand for traditional programming and artistic skills.
According to reporting about the internal directive, some developers were surprised by the scale of the proposed changes. The reaction reflected uncertainty about how their responsibilities would evolve under the new system.
Epic has not provided a detailed public explanation of how the Disney project's staffing structure will change or whether the directive will affect employment levels.
The company also has not demonstrated that a complete game produced through the reported AI-first process can satisfy its intended quality standards.
Disney's $1.5 Billion Investment Raises the Stakes
The delayed shooter is connected to a much larger business relationship between Epic Games and the Walt Disney Company.
In February 2024, Disney announced plans to invest $1.5 billion in Epic Games as part of a multiyear collaboration.
The agreement called for an expansive entertainment universe connected to Fortnite, allowing audiences to interact with characters and stories from Disney, Pixar, Marvel, Star Wars and Avatar.
The companies described plans for experiences that would let players explore, create, watch and interact with entertainment content.
Disney's investment was intended to support that broader partnership rather than finance only one individual game.
The distinction is important because the delayed Marvel and Star Wars shooter represents just one reported project associated with Epic's expanding relationship with Disney.
The original announcement also emphasized that Unreal Engine would power the planned entertainment experiences.
Disney has already worked with Epic through Fortnite collaborations and virtual production technology used in entertainment.
The broader partnership reflects Disney's interest in reaching audiences who spend significant amounts of time in interactive digital environments.
A successful game built around characters from Marvel and Star Wars could strengthen that strategy. However, no public release timetable has been established for the delayed shooter.
How AI Could Change Game Development
Generative AI systems can produce computer code, written material, images and other content from instructions provided by users.
For game developers, these tools offer several potential applications.
Programmers can use AI to draft software functions, identify possible errors and suggest changes to existing systems. Designers can create early concepts, organize production information and test alternative approaches.
Artists can also use generative systems to explore visual ideas, although the resulting images may require extensive corrections before they are suitable for a commercial game.
The attraction for companies is straightforward: if AI handles certain repetitive assignments, developers may be able to concentrate on more demanding creative and technical decisions.
However, automatically generated work can introduce new problems.
AI-written code may contain software errors, security weaknesses or inefficient instructions. Generated artwork may struggle to maintain consistent character designs or satisfy the technical specifications required for a game engine.
Developers must identify and correct those problems before including the material in a finished product.
There are also questions about copyright, ownership and the training materials used to create generative AI systems.
These issues become particularly important when working with valuable entertainment franchises such as Marvel and Star Wars.
Characters, costumes, environments and other recognizable elements must meet the standards established by the companies that control their use.
Human oversight remains essential when evaluating whether AI-generated material is accurate, appropriate and legally suitable for release.
Game Developers Express Growing Concern About AI
Epic's reported directive comes during a period of considerable skepticism about generative AI within the video game industry.
The Game Developers Conference released survey findings in January 2026 showing that 52 percent of participating industry professionals believed generative AI was having a negative effect on game development.
That figure increased from 30 percent in the previous year's survey and 18 percent two years earlier.
Only 7 percent of respondents believed the technology was having a positive effect on the industry.
Concerns were especially strong among employees involved in creative and technical production.
The survey found that 64 percent of respondents working in visual and technical art viewed generative AI negatively. The figure was 63 percent among game design and narrative professionals and 59 percent among programmers.
These results indicate that resistance is particularly widespread among workers whose responsibilities could be changed by greater automation.
They do not establish that every developer opposes AI or that the technology has no useful applications.
Many studios already use AI-assisted tools for programming, research and administrative assignments. The disagreement often centers on how extensively those systems should replace work traditionally completed by employees.
Epic's reported approach places the company near the more aggressive end of that debate.
Instead of using AI primarily to assist with selected assignments, the Disney project is reportedly being reorganized around AI-generated production.
Unreal Engine Could Extend the Impact
Epic's importance to the gaming industry extends beyond the games it creates.
The company develops Unreal Engine, software used by independent developers and major studios to produce games and interactive experiences.
Changes to Epic's internal development practices could influence how it designs future tools for outside customers.
If the company develops reliable methods for generating and testing software through AI, those techniques could eventually become available to other developers using Unreal Engine.
That possibility offers Epic a business incentive beyond improving productivity on its own projects.
However, the company has not announced that every AI workflow being introduced for the Disney shooter will become a commercial Unreal Engine feature.
The success of the strategy will also depend on whether developers can maintain quality while relying more extensively on automation.
A system that produces work quickly but requires substantial corrections may offer fewer advantages than expected.
For studios operating under demanding production schedules, reliability can matter as much as speed.
Uncertain Timeline for Disney's Upcoming Game
Epic's AI-first initiative creates a closely watched test of how far generative technology can be integrated into the production of a major commercial video game.
The company has considerable experience developing online games, creating game-engine technology and managing large interactive environments.
Disney brings globally recognized characters and a substantial financial investment to the partnership.
Together, those resources provide a foundation for an ambitious project, but they do not eliminate the technical and creative challenges associated with changing development methods.
The reported directive also leaves important questions unanswered about employees' future responsibilities and how Epic will evaluate AI-generated work.
For now, the Marvel and Star Wars shooter remains without a confirmed release date.
Epic has committed publicly to expanding AI-assisted development, but the delayed Disney project has yet to demonstrate how well that strategy will work in a finished game.