Epic Games Goes All-In on AI for Disney Project

Epic Games is shifting to an AI-first development approach for its significant collaboration with the Walt Disney Company. This strategic change means AI models will now generate all code and guide artwork for an upcoming shooter, with human developers tasked with management and oversight.

This pivot has resulted in the indefinite delay of a planned Marvel and Star Wars-themed shooter, which was initially targeted for a March 2027 release. Epic Games CEO Tim Sweeney stated the goal is not to reduce staff but to enhance productivity, enabling developers to create "more and better stuff" by leveraging AI acceleration.

The company previously laid off over 1,000 employees in March, citing a decrease in Fortnite engagement. An Epic spokesperson clarified that the company's objective with AI is to increase efficiency rather than replace jobs.

Epic and Disney have previously encountered issues with AI, such as an AI-voiced character in Fortnite exhibiting problematic behavior in May. While a recent survey indicates many game industry professionals use AI for research and brainstorming, its use for code assistance and prototyping is less prevalent.