Epic Games Goes All In On AI For Disney Shooter

Summary

Jason Schreier reports that Epic Games has further delayed an unannounced game being developed with Disney and told the project team to make it an “AI-first” production. The game is described as an extraction shooter featuring Marvel and Star Wars characters. Disney invested $1.5 billion in Epic in 2024 as part of a broader agreement to collaborate on games and other projects.

The project has reportedly faced slow progress, shifting decisions, and earlier delays. Schreier says a message shared with staff called for using AI tools such as Claude across development: no more handwritten code, and art created through “full AI workflows.” The release date is now uncertain. He also notes that Epic has not released a new standalone game since Fortnite, which may have contributed to underestimating the work involved.

Epic CEO Tim Sweeney has said the company is reorganizing developers to accelerate the use of AI. He argues that the goal is to help teams make more and better work—not simply to do the same work with fewer people. Sweeney sees AI as a major change Epic should embrace, including in Unreal Engine, which is widely used across the game industry.

Schreier places the move amid broader debate over AI’s effects. Game developers commonly use AI for programming assistance, he says, but AI-generated art and other player-facing content remain especially controversial. Concerns include copyright, low-quality or repetitive output, errors, and the environmental and hardware-market effects associated with data centers. Epic also laid off 1,000 employees in March, which Schreier says was partly tied to Fortnite losing momentum.

The delayed game will be an important test of whether an AI-first workflow can produce a polished, enjoyable game and deliver real efficiency gains—or instead create extra work and controversy. It is also unclear whether players who object to AI-generated content will avoid the game in practice. Schreier says some Epic employees are reportedly confused or stunned by the plan, and that even AI optimists are unsure how it will work.

Schreier says he has experimented with AI tools but often finds their mistakes make them less useful than doing the work himself. He emphasizes that the outcome remains uncertain and says he will continue reporting on Epic’s approach.

Presenters and Contributors

• Jason Schreier: Presenter and reporter
• Cecilia D’Anastasio: Bloomberg colleague cited for earlier reporting
• Tim Sweeney: Epic CEO, quoted