Epic Games Delays Disney Project to Pivot Toward AI-First Production

Epic Games has reportedly delayed a video game project being developed for Disney to integrate more artificial intelligence into its creation, as Engadget first reported via Bloomberg.

Bloomberg reports that a director for the project informed the development team that the game would now follow an "AI first" production plan. This directive explicitly stated there would be "no more hand-written code" and mandated that all art for the project be created using "full AI workflows."

While Epic Communications Director Jake Jones told Bloomberg that the company is embracing "AI-accelerated development" led by visionary developers, the shift has reportedly not been well-received by some staff, according to Bloomberg sources.

This pivot follows a $1.5 billion investment Disney made into Epic in 2024 to build a "games and entertainment universe." While the project was rumored to be an extraction shooter similar to Arc Raiders, Bloomberg reports the launch date has been pushed back to March, following a previous delay from November.

The move comes as industry sentiment toward generative AI sours. An annual survey from GDC found that 52% of developers believe the technology is bad for the industry, an increase from 30% in 2025. The survey further noted that while developers utilize generative AI, it is most commonly used for programming and research rather than the creation of assets.