Epic Games, the company behind Fortnite and Unreal Engine, is reportedly making a dramatic shift in how it builds one of its biggest upcoming projects. According to Bloomberg, the studio has delayed a game it is developing with Disney so the team can adopt an “AI first” production plan. Internal messages reportedly called for an end to hand-written code and for all of the game’s art to come from AI workflows.
Here is what has been reported, what Epic has said publicly, and why the move matters well beyond one game.
What the Report Says
Citing people familiar with the project, Bloomberg reported that one of the game’s directors told the team the production would now be AI first. The internal message reportedly ruled out hand-written code and said the art should be produced with full AI workflows.
Bloomberg’s sources said not everyone welcomed the change, and some developers reportedly hoped the directive was not entirely serious. Given how much generative AI Epic has been adding to Unreal Engine this year, the plan appears to be real.
Keep in mind that these details come from anonymous sources. Epic has not publicly confirmed the specific internal instructions or a new release date.
What Epic Has Said
Epic did not deny the shift. In a statement to Bloomberg, communications director Jake Jones said the company is embracing AI-accelerated development, led by Epic’s own developers as the creative drivers of its work.
“AI first” can mean very different things in practice. The real story will be in how much creative control stays with the people making the game.
The Disney Partnership Behind the Game
The project comes out of a deep partnership between the two companies. Disney invested $1.5 billion in Epic in 2024, with the goal of building a shared games and entertainment universe connected to Fortnite.
| Detail | What Has Been Reported |
|---|---|
| Partnership | Disney invested $1.5 billion in Epic in 2024 |
| Rumored game type | An extraction shooter in the style of Arc Raiders |
| Earlier timing | Reportedly planned for November, then pushed to March before the AI directive |
| Latest change | Delayed again so the team can lean more on AI, per Bloomberg |
Disney characters have shown up in Fortnite as skins for years, but this project was meant to go further. That makes the decision to rebuild production around AI especially notable.
Game Developers Are Divided on Generative AI
Epic’s move lands at a time when many developers are skeptical of AI. In the Game Developers Conference’s annual survey this year, 52% of respondents said generative AI is bad for the industry, up from 30% in 2025.
The same survey showed that many developers do use AI tools, but mostly for research and programming help rather than creating game art and assets. An all-AI art pipeline would push well past how most studios use the technology today.
- Supporters say AI can cut production time and costs on huge projects.
- Critics worry about job losses, creative quality, and the use of artists’ work in AI training.
- Players will likely judge the result by whether the game feels polished and original.
What This Means for You
Whether you play games or make them, this is a sign of where the industry is heading.
- For players, AI-heavy production could mean more content, faster updates, or new kinds of games, but quality is the open question.
- For developers, AI skills are quickly becoming part of the job, from code helpers to tools on our list of AI gaming tools.
- For artists, the debate over AI-generated art is moving from theory to real studio policy, a theme we explore in AI ethics at work.
- For hobbyists, many of the same techniques are already available through AI image generators and AI game generators.
Sources
This report is based on Bloomberg’s reporting as summarized by Engadget.
Conclusion
If Bloomberg’s report is accurate, Epic Games is turning one of its highest-profile projects, a game built with Disney, into a test case for AI-first development, with AI-written code and AI-made art at its core. Epic says its developers remain the creative drivers, while many in the industry remain wary of generative AI. However it turns out, this project will be watched closely as a signal of how far big studios are willing to go. Follow the story and more on our AI news hub.
