Epic Games shifts Disney project to AI-first work

Epic is reportedly moving its Disney Marvel and Star Wars project to AI-led development and delaying a shooter, with sources split on layoffs and timing.

Reports on Oct. 12, 2026 say Epic Games is shifting a Disney collaboration featuring Marvel and Star Wars toward AI-generated code and art, with developers still involved. Ars Technica, citing Bloomberg, says the $1.5 billion partnership announced in early 2024 was expected to produce a shooter in March 2027 and is now delayed indefinitely, using models such as Anthropic’s Claude while humans guide the outputs. Epic confirmed AI-accelerated development led by its developers, and CEO Tim Sweeney said the change should help Unreal Engine teams build more. A separate report uses stronger language, saying leadership ordered no more hand-written code and full AI workflows and that staff were stunned. Sources disagree on timing: one says the game missed a March target after Epic underestimated staffing needs, while Ars specifies an indefinite delay of a March 2027 date and does not mention layoffs. Only the first report cites about 1,000 layoffs tied to weaker Fortnite engagement, says Disney did not comment, and notes Disney’s earlier interest in user-generated AI content for Disney+ via Sora.

• On Oct. 12, 2026, reports said Epic Games is moving its Disney collaboration—featuring Marvel and Star Wars—toward AI-accelerated development and confirmed that stance to Bloomberg.
• Ars Technica, citing Bloomberg, says the partnership is worth $1.5 billion, was announced in early 2024, and was meant to deliver a shooter in March 2027 that is now delayed indefinitely.
• The other report says the Disney game missed a March target after Epic underestimated staffing; it does not give the year or call the delay indefinite.
• Ars says models such as Anthropic’s Claude would generate code and artwork, with developers guiding outputs and remaining creative leads.
• One report says leadership ordered no more hand-written code and full AI workflows, and that staff were stunned.
• That report alone says Epic laid off about 1,000 people after weaker Fortnite engagement.
• CEO Tim Sweeney framed the shift as helping Unreal Engine teams build more, according to Ars.
• Disney did not comment; one report notes Disney previously explored user-generated AI content for Disney+ through Sora.