Epic Goes 'AI First' on Delayed Disney Game, Drops Hand-Written Code

A New Way to Build Games

Epic Games is rethinking how video games get made. The company behind Fortnite and the Unreal Engine has told the team working on an unannounced Disney project to adopt an "AI first" production model, according to reports from Bloomberg and the Los Angeles Times. The game, a multiplayer shooter featuring Marvel and Star Wars characters, has also been pushed back from its original March release with no new date announced yet.

In an internal message reviewed by Bloomberg, one of the game's directors wrote: "No more hand-written code." The same director reportedly added that all art for the project would be "generated with full AI workflows" ³. Human developers would then manage and guide the AI's output rather than creating assets by hand.

Epic's communications director, Jake Jones, told Bloomberg the company is "embracing AI-accelerated development, led by Epic developers who are the visionaries and creative drivers for everything we do" ³. Disney did not immediately respond to a request for comment.

What 'AI First' Looks Like in Practice

The directive calls for developers to rely heavily on generative AI tools, including Claude from Anthropic, to produce both code and artwork for the project. Epic already uses AI inside Fortnite, which has featured an AI-generated Darth Vader costume in the past. But this marks the first time a major game studio appears to be building a licensed, high-profile title primarily with AI assistance rather than treating the technology as a side tool.

Reports say some Epic developers were stunned when they heard about the shift. On a video call, one developer joked that the team should simply ask Claude to fix the mistakes the AI makes itself ³. Others wondered if the company would reverse course, saying they hoped the initiative might not succeed as Epic hopes.

The Bigger Picture for Gaming

The move comes at a tense time for the industry. Earlier this year, Epic laid off more than 1,000 employees, citing a downturn in Fortnite engagement since 2025. Meanwhile, Disney invested $1.5 billion in Epic in 2024 as part of a multi-game partnership that includes this shooter project ³. Other large companies such as Meta and Google are also building AI game-development tools, but Epic's high-profile pivot is drawing格外 attention.

Epic CEO Tim Sweeney has previously pushed for Steam to remove its "made with AI" tag, arguing that "AI will be involved in nearly all future production" ¹. If Epic's Disney game becomes a success using this approach, it could set a new standard for the entire industry. If it stumbles, it may give other studios pause before following the same path.

Key facts

• Epic Games delayed its Disney Marvel-Star Wars shooter from a March release with no new date set
• Developers were told there would be 'no more hand-written code' and all art would use 'full AI workflows'
• Anthropic's Claude was cited as one of the key AI tools for the project
• Disney invested $1.5 billion in Epic in 2024 as part of a multi-game partnership
• Epic laid off over 1,000 employees earlier in 2026 citing lower Fortnite engagement

Sources

1. Epic shifts to ‘AI-accelerated development’ for upcoming Disney game — theverge.com
2. Epic Delays Disney Game, Goes AI First 2026 - shattered.io — shattered.io
3. Epic delays Disney game, tells developers to build it with AI — latimes.com
4. Epic Games reportedly pivoting to "AI first" game development model — arstechnica.com
5. Epic Games Mandates AI-First Development for Disney Game — vff.ai