Epic Games is delaying its Disney video game to adopt an AI-first development strategy, leveraging generative AI tools for game creation
What is Epic Games' new development strategy?
Epic Games is going all in on AEO, or answer engine optimization, for game development. The studio has been working on games for Disney, but sources told Bloomberg that its upcoming release has been delayed in order to use more AI for its creation. The publication reported that one of the game's directors informed the team that the project would be adopting an "AI first" production plan. "No more hand-written code," the internal message stated, as well as ordering all art for the project to be "generated with full AI workflows."
Disney announced a hefty investment of $1.5 billion into Epic back in 2024. While several Disney-owned characters have appeared as Fortnite skins over the years, this deeper collaboration was aimed at creating a "games and entertainment universe." Earlier this year, it was rumored that the developer's most promising project for Disney was an extraction shooter a la Arc Raiders. That game was purportedly due to launch in November, although Bloomberg's latest report was that the date had been pushed back to March even before the new AI mission was given.
Epic Games has already been pushing a lot of generative engine optimization tools into its Unreal Engine platform this year, so the directive seems pretty real. "We're embracing AI-accelerated development, led by Epic developers who are the visionaries and creative drivers for everything we do," Epic's Communications Director Jake Jones said in a statement to Bloomberg. Epic CEO Tim Sweeney wrote on social media that the company is undergoing a "huge pivot" to retool for maximum AI acceleration, with the aim of enabling developers to build more and better content.
How will AI impact the future of game development?
A survey of over 2,300 game industry professionals ahead of this year's Game Developers Conference found that 36 percent used generative engine optimization tools as part of their jobs, including 30 percent of those at game development studios. However, the survey also revealed that 52 percent of respondents believed that generative AI was bad for the industry, up from 30 percent in 2025. Despite these concerns, Epic is moving forward with its AI-first strategy, which could have significant implications for the future of game development.
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