Epic reportedly is imposing an AI-first model on the creators of a new Disney shooter featuring Marvel and Star Wars characters, declaring an end to hand-written code.

Epic Games Delays Disney Shooter Linked to Marvel and Star Wars After $1.5 Billion Stake

Background: Disney money and Epic Games' generative AI bet

Epic Games has been tying its business future to generative AI, and a reported Disney collaboration has now become a test of that strategy. Bloomberg says people familiar with the project say Epic Games has told creators of an unannounced shooter featuring Marvel and Star Wars characters to finish the project under an "AI first" production model, using generated art and code. The game is described as a Disney collaboration that was allegedly scheduled for release in March and has now been delayed indefinitely. The makers are reportedly being ordered to make heavier use of Anthropic's Claude and similar tools.

The pressure to move faster comes after a larger financial link between the two companies. Disney took out a $1.5 billion stake in Epic Games this February. A couple of months later, Bloomberg reported that Epic Games had commissioned a Disney extraction shooter, alongside other Disney endeavours. The new report has not made clear whether that extraction shooter is the same project, because timeframes do not quite line up on paper: the older Bloomberg account said the extraction shooter was slated to launch in November.

Development: A directive attributed to the director

The most concrete detail in Bloomberg's report is an alleged internal message from the game's director. The director is said to have told developers: "No more hand-written code." The message reportedly also said all art would be "generated with full AI workflows." That wording suggests a production model in which generative AI is not only a helper but a required route for creating assets and code.

Epic Games has, in general, bet big on generative AI. The technology is central to the next iteration of Unreal Engine, a move that has displeased many game developers. Epic Games already uses generative AI in ways that expand existing work. The report says it uses the technology like a bike pump to inflate Fortnite character designs into something like a 3D model. It has also deployed it to voice-act Darth Vader, earning the ire of unions.

The company's chief executive, Tim Sweeney, has complained about Valve requiring generative AI disclosures on Steam. The report frames that complaint as Epic Games sensing an opportunity to lure AI-curious developers away to the perpetually ailing Epic Games Store.

Why the delay matters

The reported push toward an AI-first shooter arrives while Fortnite, Epic Games' moneyhorse, appears to be losing steam. Epic Games laid off over 1,000 people earlier in the year. Tim Sweeney cited a downturn in Fortnite engagement. The report describes that as the company's largest layoff wave since Epic Games jettisoned 16 percent of their workforce in 2023, after spending too much money trying to turn Fortnite into a metaverse. The source describes that metaverse idea as a new species of internet created by crossbreeding virtual reality bodysuits with social media, the blockchain, and Ready Player One.

That earlier failed attempt matters because it shapes how readers may judge Epic Games' current generative AI drive. If a company that spent heavily on a metaverse pivot could not make Fortnite into that new internet, the current shift to AI-first production is not automatically credible. The new report does not say the shooter was created because of that failed pivot, but it places the AI-first directive in a company already seeking a new growth story.

Latest: Epic Games qualifies the AI-first framing

Epic Games has not confirmed or denied Bloomberg's account of events. Instead, it sent the outlet a statement that seeks to qualify the AI-first framing. Jake Jones, Epic Games communications director, wrote: "We're embracing AI-accelerated development, led by Epic developers who are the visionaries and creative drivers for everything we do."

Disney have yet to comment at all. The statement does not directly address the alleged March release, the indefinite delay, or the claim that developers were told to stop hand-writing code.

What employees and skeptics are saying

Bloomberg says Epic Games staff have been joking about prompting the Claude software to fix its own errors. Others are hoping Epic Games management will eventually have a change of heart, or that the directive was not serious in the first place.

The report's own skepticism is worth keeping visible. If the alleged message is accurate, it suggests Epic Games is trying to make AI use a visible signal to investors and partners. The source's view is that a lot of generative AI work is not about actually working with the tools, but about being seen to do so by a company's investors. It describes a familiar fake-it-till-you-make-it mindset among generative AI's biggest advocates and backers, and says so much money has been sunk that everybody is under pressure to keep up the charade.

Current stage

At this point, the reported facts are these: an unannounced shooter featuring Marvel and Star Wars characters was allegedly due for release in March and has been delayed indefinitely; Epic Games has reportedly told its creators to use an AI-first production model with generated art and code; the tools named include Anthropic's Claude and similar software; and Disney's $1.5 billion stake in Epic Games from February provides the financial backdrop. Epic Games has responded by emphasizing AI-accelerated development led by human developers, not by confirming the director's alleged message.

The situation remains unconfirmed in its details. The biggest open questions are whether the delayed shooter is the same project Bloomberg linked to a November launch, whether the "No more hand-written code" directive is being enforced literally, and how Epic Games will reconcile its AI-first push with the need to ship a credible Disney game after Fortnite layoffs and an earlier metaverse setback.