Epic Games Delays Disney Shooter, Shifts to AI-First Development Strategy
Epic Games has indefinitely delayed its upcoming Marvel and Star Wars shooter while restructuring teams to prioritize AI-generated code and art assets.

Key points
- The $1.5 billion Disney collaboration project is now delayed indefinitely due to understaffing and a strategic pivot.
- Epic Games is adopting an "AI first" approach where models generate all code and artwork for the shooter.
- Internal messages indicate human developers will manage AI outputs rather than writing code or creating art manually.
Epic Games has indefinitely delayed the release of its upcoming Marvel and Star Wars-themed shooter while implementing a major strategic shift toward artificial intelligence. According to a Bloomberg report, the company is moving to an "AI first" development model for this high-profile collaboration with the Walt Disney Company.
Human developers at Epic will no longer write code by hand or create art assets manually. Instead, internal employee messages viewed by Bloomberg indicate that staff will manage and guide outputs from AI models, including Anthropic’s Claude. This new workflow means all code and art for the project will be generated through full AI processes, marking a significant departure from traditional game development methods at the Unreal Engine maker.
Strategic Pivot and Project Delays
The shooter was originally scheduled for release in March 2027 as part of a $1.5 billion partnership announced in early 2024. However, the project has been pushed back indefinitely amid the internal shakeup and slower-than-expected progress caused by understaffing. Bloomberg cited unnamed people familiar with the project as describing this significant pivot in internal development practices at Epic Games.
Epic CEO Tim Sweeney addressed the changes on social media shortly after the Bloomberg story was published. He stated that the company is moving developers around to retool for maximum AI acceleration. Sweeney emphasized that the goal is not to do the same work with fewer people, but to enable teams to build more and better content while bringing benefits to all teams using Unreal Engine.
Industry Context and Workforce Changes
Epic has long expressed optimism about AI’s role in game creation. In a June interview with IGN, Sweeney suggested that AI would allow small teams to create games with immense interactive worlds and characters through simple setups. He also criticized AI disclosure tags required by platforms like Valve’s Steam, arguing they make no sense because AI tools will be involved in nearly all future production.
The company recently faced workforce reductions, laying off over 1,000 employees in March due to a downturn in Fortnite engagement. Despite these cuts, Epic leadership has attempted to address employee concerns about job security. Stephanie Arnette, Fortnite Senior External Development Manager, stated months after the layoffs that the goal is not for AI to take all jobs, aiming to reassure staff about the company’s intentions regarding automation.
What should you do?
Security and technology professionals should monitor how AI-generated code is vetted for vulnerabilities before deployment. Organizations adopting similar AI workflows should establish strict review processes for automated outputs. Teams should also track updates from Epic regarding the delayed Disney project for insights into industry trends.
What to do and how to stay safe: Epic Games
- Review internal policies for validating code and assets generated by AI models to ensure security standards are met.
- Monitor official statements from major publishers regarding project delays to assess broader industry shifts in development timelines.
- Evaluate current team structures to determine if roles need redefinition to manage AI-guided workflows effectively.
- Stay informed about regulatory changes or platform requirements regarding AI disclosure in software production.
Step-by-step guide: Prompt Injection Warning Signs: How to Spot AI Manipulation
General security guidance from the Threat Times newsroom. It is not confirmed advice from the organisations named in this story.
Frequently asked questions
Why was the Epic Games Disney shooter delayed?
The project was delayed indefinitely due to understaffing, slower-than-expected development, and a strategic pivot to an AI-first development model.
How will developers work on the new project?
Human developers will manage and guide code and art assets generated by AI models like Anthropic’s Claude, rather than creating them manually.
Did Epic Games reduce its workforce recently?
Yes, Epic laid off over 1,000 employees in March, citing a downturn in Fortnite engagement as the primary reason.


