Epic Games has delayed an unannounced crossover shooter featuring Marvel and Star Wars characters, Bloomberg reported. The project, previously scheduled for a March 2027 release, now lacks a new launch date. The delay coincides with a major internal shift at the Fortnite and Unreal Engine maker, which is directing its developers to rely heavily on generative AI tools to complete the game.
AI-First Development Pivot
According to the report, one of the game’s directors informed staff that the studio is moving away from traditional coding methods. “No more hand-written code,” the director reportedly told employees. The new workflow requires all art assets for the game to be generated through full AI pipelines.
Epic Games communications director Jake Jones addressed the change in a statement to Bloomberg. “We’re embracing AI-accelerated development, led by Epic developers who are the visionaries and creative drivers for everything we do,” Jones said.
The directive has reportedly shocked some developers within the company. The announcement comes shortly after Epic Games CEO Tim Sweeney posted on X that the company is undergoing a “huge pivot underway here at Epic, moving developers around to retool for maximum AI acceleration.” Sweeney emphasized that the goal is not to reduce headcount but to enable staff to build more content.
Context of Layoffs and Disney Partnership
This strategic shift follows significant workforce reductions at Epic Games. The company laid off over 1,000 developers in March, a move Sweeney attributed to a downturn in Fortnite engagement that began the previous year. He stated that the studio was spending more than it was earning during that period.
The timing also intersects with Epic’s broader relationship with Disney. Disney invested $1.5 billion in Epic Games in 2024 and entered into a multi-game partnership. The two companies previously collaborated to introduce an AI-voiced Darth Vader into Fortnite, a feature that players quickly exploited. Earlier this year, Epic announced plans to use AI to voice dozens of Fortnite skins, a move that drew comparisons to the controversy surrounding AI voices in the game Arc Raiders last fall.
Sweeney faced criticism on X regarding the AI push. One user commented that the CEO was not reading the room well regarding developer sentiment. Sweeney responded that the industry must design for the present and future, stating he is optimistic about AI empowering creators. He did not directly address a user’s question linking the AI pivot to the recent layoffs of 1,000 staff members.
Bloomberg noted that development on the Marvel and Star Wars title has progressed slower than anticipated. Sources indicated that Epic underestimated the number of developers and the time required to build the game. The company is now attempting to accelerate production through the new AI-centric approach.
Source: Polygon
