Epic Games has delayed its upcoming Disney collaboration — a shooter featuring characters from both the Marvel and Star Wars franchises — and simultaneously told developers to adopt an AI first production model, according to a Bloomberg report confirmed by multiple outlets.
What Happened
The game, which had been slated for a March release, now has no confirmed release date. In an internal message seen by Bloomberg, one of the game’s directors told staff: No more hand-written code. The same director said all of the game’s art would be generated with full AI workflows.
Developers were told about the change on a video call last week, and some were reportedly stunned, according to Bloomberg’s sources. The shift comes as Epic continues encouraging AI use across its studios — a move that has drawn significant backlash.
The Disney Connection
Disney invested $1.5 billion in Epic in 2024 and took an equity stake. The two companies announced a sweeping partnership covering multiple games, with this shooter intended to be the first release under the deal. In March, Epic said the game would feature an open-world experience spanning both the Marvel and Star Wars universes.
The delay is attributed partly to development falling behind schedule, with Bloomberg noting that Epic misjudged the staffing and time the game would need.
Epic’s Official Position
In a statement to Bloomberg, Epic communications director Jake Jones said the company is embracing AI-accelerated development, led by Epic developers who are the visionaries and creative drivers for our games. Epic has long been supportive of generative AI in game development, previously rolling out an increasing number of AI features in Fortnite.
Developer Backlash
TechPowerUp reports that the announcement was met with skepticism and backlash by Epic Games developers. The leak comes shortly after Epic laid off approximately 1,000 workers following a downturn in Fortnite player numbers — adding to tensions within the company.
On social media, the response has been sharply critical. Commenters on TechPowerUp’s coverage called the move ridiculous and accused Epic of prioritizing cost-cutting over quality. One commenter wrote: Just wait for the day when Tim’s humans can’t figure out how to fix what AI broke.
The Bigger Picture
A 2026 GDC survey found that more than a third of game developers now use AI in their work, while more than half believe it is harmful to the industry. Epic’s move puts it at the forefront of that divide — and the delay of a flagship Disney project suggests the transition is not going smoothly.
The same week, Xbox announced its own AI-focused initiative (Xbox Labs), and Dragon Quest creator Yuji Horii released a game he said he made with AI in about 30 minutes. The industry’s AI reckoning is accelerating.