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Tuesday, October 13, 2026

Epic Games delays Disney project and pivots to "AI-first" game development

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Epic Games looks set to be using a lot more AI going forward.

It is a time of change for the Fortnite developer, with a recent big-money collaboration with Disney leading to the production of an upcoming Disney game.

And it is this game that seems to be causing issues internally, with Bloomberg reporting that the game has been delayed as development moves to an "AI-first" model.

According to several unidentified individuals, developers have been instructed to use AI tools such as Claude, with humans there to manage and guide what they create.

Internal memos from the game's directors reportedly include directives like "no more hand-written code", as well as confirmation that the game's art would be "generated with full AI workflows".

Like many other companies, Epic Games has been open about its use of AI thus far, with it being rolled out on a smaller scale with regard to Fortnite.

But this shift would represent the first time a major developer has openly attempted to develop a title with AI at the forefront.

Epic Games communications director Jake Jones said in a statement to Bloomberg News: "We're embracing AI-accelerated development, led by Epic developers who are the visionaries and creative drivers for everything we do."

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The news has reportedly been received poorly by staff, with mocking questions about AI errors and hopes that the company would reverse the decision.

It comes after the company laid off more than 1,000 employees earlier this year – a move that Epic Games CEO Tim Sweeney insisted was not "related to AI".

Yesterday (12 October), Sweeney posted to social media: "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."

In response to an accusation that he was unable to "read the room", Sweeney replied, "Much of the room wants it to be 2016 again, but it's not. Our job, as the provider of tools and technology to much of the industry, is to design for the present that is and the future that will be soon.

"Personally, I'm optimistic about it and see it as empowering for creators."

The use of AI in game development continues to be a contentious topic, with Capcom's recently announced plans and Nvidia's DLSS 5 tech being met with as many jeers as cheers.

For a while, it has been obvious that the future of AAA game development will include AI to some extent.

It is now becoming apparent that, as soon as it becomes palatable, AAA game development may be little else.

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Authors

Alex Raisbeck is a Gaming Writer at Radio Times, covering everything from AAA giants to indie gems. Alex has written for VideoGamer, GamesRadar+, PC Gamer, PCGamesN and more.

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