Epic Games Goes AI First, Delays Marvel & Star Wars Game Release
Epic Games is moving toward AI-driven game development, and an unannounced Marvel and Star Wars shooter game is among the first projects affected.
According to internal messages reported this week, developers working on the game have been instructed to adopt an "AI first" production model. The new approach would see AI tools such as Anthropic's Claude generate code and artwork, with instructions calling for "no more hand-written code." Instead, developers would focus on directing, reviewing, and refining AI-generated work.
The shooter game, which reportedly had a March 2027 release target, has now been delayed indefinitely. Reports that development has been understaffed and progressing more slowly than expected might have pushed for AI to become a primary tool of development.
The project is part of Epic's partnership with Disney, which began with Disney's $1.5 billion investment in the company in early 2024. An Epic spokesperson confirmed that the company is embracing AI-assisted development while maintaining that its developers remain responsible for the creative direction of its projects.
Epic CEO Tim Sweeney went into more detail about the decision on X. He explained that employees are being reassigned and trained to work with AI tools, but rejected suggestions that the goal is to reduce the workforce. Instead, he said the company wants its developers to produce more and improve the tools available to studios using Unreal Engine.
Sweeney also shared estimates of how much AI has improved productivity. According to him, the technology currently speeds up certain technical tasks in Unreal Engine development by around 20%, while some areas, such as web development, have seen gains of up to five times. He expects most development work to become at least three times as productive as it was in January 2026 within the next year.
Sweeney argued that AI could speed up game development and testing, helping studios identify problems earlier and avoid costly mistakes. He also dismissed concerns about players' negative reactions to generative AI, maintaining that the technology will become a standard part of game development.
On March 24, 2026, the company laid off more than 1,000 employees, with Sweeney attributing the decision to declining Fortnite engagement and spending that had exceeded revenue. Epic also identified more than $500 million in other cost reductions. At the time, Sweeney stated that the layoffs were unrelated to AI.
Epic's new approach goes beyond how most game studios currently use generative AI. According to a 2026 Game Developers Conference survey involving more than 2,300 industry professionals, 36% reported using generative AI at work, primarily for research and brainstorming rather than coding or building game prototypes.
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