Epic Games Delays Unannounced Disney Shooter, Orders AI-Only Code

Epic Games has postponed its unannounced Disney-themed shooter, according to Bloomberg, and instructed developers to cease writing code manually. The company's latest AI directive requires developers to use tools like Anthropic's Claude.

The Fortnite maker describes this as a push for faster development rather than job reductions. Yet the directive arrives several months after the firm cut over 1,000 positions, approximately 20% of its workforce.

Can an AI Workflow at Epic Games Save the Stalled Disney Project?

A game director informed employees that “no more hand-written code” would be permitted, per Bloomberg. The crossover game, incorporating Marvel and Star Wars characters, has not yet received a launch date.

That same day, Epic's chief executive Tim Sweeney posted on X about “a huge pivot” toward accelerating AI integration.

We have a huge pivot underway here at Epic, moving developers around to retool for maximum AI acceleration.

The aim isn't to do the same stuff with fewer people, but to enable everyone here to build MORE and BETTER stuff, and to bring the benefits to all teams using Unreal.

— Tim Sweeney (@TimSweeneyEpic) October 12, 2026

Sweeney stated that the objective is to enable employees to create more and superior games, rather than reducing team sizes.

Nonetheless, the move toward AI at Epic drew immediate criticism against a backdrop of increasing layoffs attributed to automation. One detractor claimed Sweeney was out of touch with prevailing sentiment. In reply, Sweeney contended that many in the gaming industry wish to return to the state of affairs in 2016.

Why Does Sweeney Predict That Games Will Merge?

Sweeney thinks that shortening the time from concept to playtesting might avert several recent failures in high-budget AAA titles.

In response to a query about whether Epic aims to cut development time in half, Sweeney provided data. Current efficiency improvements range between 20% for technical engine tasks and fivefold for web development, he posted.

By 2027, he anticipates that nearly every domain will achieve at least three times the productivity seen in January 2026.

Beyond that, Sweeney forecast that linking and combining disparate games is the subsequent step. He observed that hobbyists are already exploring this concept.

Nevertheless, he emphasized that reliable, shared engines are beneficial. He added that scaling software is still the most challenging problem, even with AI.

When questioned about a potential initial public offering, Sweeney described Epic's ambition as more humble. The firm aims to survive the AI upheaval and assist fellow developers in doing likewise.

In parallel, Anthropic is promoting more affordable Claude coding models while competitors like Meta's Muse Code tool pursue it. Should Epic's AI method prove successful, other game studios might emulate the approach.