Epic Games Embraces AI for Marvel and Star Wars Shooter, Developers React

Few subjects create as much division in the gaming industry as generative AI. As studios unveil new tools, players demand transparency, and developers ponder how much of their artistry is being delegated to machines. Now, one of the industry’s giants is advancing this debate further than any other major studio has thus far.

Epic Games, the creator of ‘Fortnite’, has dedicated the last two years to a significant partnership with Disney. In 2024, Disney invested $1.5 billion in Epic for an equity stake, which included plans for several games. The first title was anticipated to be a shooter featuring characters from both Marvel and Star Wars, previously described as an extraction shooter akin to ‘Arc Raiders’.

However, that game has been postponed, and its development approach has shifted dramatically. According to a Bloomberg report, Epic has instructed developers on the unannounced shooter to implement an “AI first” production model. Bloomberg reviewed an internal message in which a project director informed staff that there would be “no more hand-written code.”

The director also indicated that all artwork for the game would originate from complete AI workflows. Developers were reportedly advised to utilize Anthropic’s Claude as part of this new strategy, with human oversight guiding the AI’s output instead of creating everything manually. Bloomberg characterized this as the first instance of a major video game company constructing a title with AI as the core foundation of its development pipeline.

Initially scheduled for release in March 2027, that date has now been removed, and no new timeline has been provided. Sources informed Bloomberg that development has been slower than anticipated, and Epic may have underestimated both the workforce and time required. The company has not disclosed a reason for the delay.

The news reportedly hit hard. Developers were informed of the changes during a video call in early October, and Bloomberg noted that staff raised concerns about how errors in AI-generated content would be addressed. Others expressed skepticism about whether the initiative would yield the results Epic envisions, with various outlets citing confusion and shock among those involved in the Disney project.

Bloomberg’s findings stem from anonymous sources and an internal message, while Epic has only confirmed its broader direction. A spokesperson stated that the company is embracing AI-accelerated development led by Epic developers, whom they described as the visionaries and creative forces behind all their projects.

Epic CEO Tim Sweeney publicly addressed the controversy, stating that a significant shift is occurring as developers are reassigned to maximize AI integration. He emphasized that the goal is not to accomplish the same tasks with fewer personnel but to enable everyone to create more and better content, with the advantages extending to teams utilizing Unreal Engine.

When critics suggested he was misinterpreting the sentiment, Sweeney responded that many in the audience long for a return to 2016, but that is not the reality. He asserted that Epic’s role as a provider of tools and technology is to innovate for the present and near future, expressing personal optimism and viewing AI as empowering for creators.

The timing is sensitive. In March, Epic laid off over 1,000 employees, citing a decline in Fortnite engagement that began in 2025 and expenditures that exceeded revenue. At that time, Sweeney clarified that the layoffs were not connected to AI, and the company announced more than $500 million in cost reductions alongside the job cuts.

Epic has also faced prior criticism regarding AI. In June, it released a video demonstrating how generative tools were employed to create concept art for Fortnite skins, with artists manually correcting the results. Some players responded by requesting disclaimers on cosmetics produced with the technology.

This report raises a broader question: what occurs when a studio develops a licensed project centered around Marvel and Star Wars characters using an AI-driven pipeline? Disney has not publicly commented on the report, and it remains uncertain how much of the final product will depend on AI or how the studio plans to maintain quality. The outcome will likely influence how other publishers approach this technology.

For gamers, the stakes revolve less around the tools and more around the outcomes. If the shooter is successfully launched and plays well, Epic’s bold move could set a precedent for the industry, while a misstep would provide critics with more ammunition.

Have something to add? Let us know in the comments!