Epic Games’ Delayed Disney Game Raises Questions About AI-First Development

Epic Games, the company behind Fortnite and the Unreal Engine development platform, is reportedly facing delays to its upcoming Disney-linked game as it moves towards an AI-first approach to development.

The project is part of a wider partnership between Epic and Disney, bringing together the game developer’s interactive technology with some of the entertainment giant’s best-known franchises. Although full details of the game have not yet been officially unveiled, it is expected to feature characters from Disney-owned properties, including Marvel and Star Wars.

Reports published in October 2026 indicate that the project has been delayed, with no confirmed new release date. The reported setback comes as Epic explores greater use of artificial intelligence in its development process, including tools designed to assist with coding and artwork.

One of the tools reportedly involved is Claude, an AI assistant developed by Anthropic. AI coding assistants can help developers generate code, explain unfamiliar systems, identify potential errors and suggest solutions to programming problems. In game development, these capabilities could speed up certain tasks, although generated code still needs to be checked, tested and integrated into a complex software project.

AI-generated artwork presents a different set of possibilities. Developers can use image-generation tools to explore visual concepts, experiment with environments and create early design references. However, producing artwork that is consistent with a game's established style, technically suitable for use in the finished product and cleared for commercial use requires further work.

An AI-first workflow would place these technologies closer to the centre of production rather than treating them simply as optional tools. That approach raises questions about quality control, intellectual property, creative oversight and the roles of human developers and artists.

A game featuring major entertainment franchises also has additional challenges. Character designs, environments and story elements need to fit the established properties, while the finished experience must meet technical and creative expectations. AI tools may help with individual tasks, but they cannot by themselves guarantee a coherent, polished game.

The project is significant because of the scale of the companies involved. Disney announced a $1.5 billion investment in Epic Games in February 2024, alongside plans for a new games and entertainment universe connected to Disney’s characters and stories. The collaboration was intended to create opportunities for audiences to interact with Disney content in new ways.

The reported delay leaves the game's development timetable uncertain. Until Epic confirms further details, the extent of AI's role and the reasons for the revised schedule remain unconfirmed.

The project nevertheless highlights a wider question facing the games industry: can AI help studios build ambitious interactive worlds more efficiently while maintaining the technical quality, creative judgement and human expertise that major releases demand?