Epic Games has delayed an unannounced Star Wars and Marvel crossover shooter and instructed its developers to adopt an “AI first” approach to production. Staff were informed of the pivot last week, according to a report by Bloomberg, with the project pushed back indefinitely from its previously targeted March 2027 release.
The shift appears comprehensive: per Bloomberg’s reporting, Epic told staff to “implement an ‘AI first’ production model using tools such as Anthropic’s Claude.” Art assets will be “generated with full AI workflows,” according to the same set of instructions.
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.
Tim Sweeney, CEO of Epic Games
Shortly after Bloomberg’s report was published, Epic Games CEO Tim Sweeney shared his own thoughts on AI use at the company. He described an ongoing effort to retool developers for “maximum AI acceleration,” adding that he is optimistic about the technology and views it as empowering for creators.

Sweeney also addressed consumer attitudes toward generative AI, saying: “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 soon be.”
When asked whether Epic would accelerate an IPO, Sweeney said: “Our more modest aim is to survive the AI revolution, help other developers do the same, and come out on the other end making better code and content faster.”
On potential improvements to development time, he estimated gains were currently “highly variable,” ranging from 20% in some areas of Unreal Engine development to 5x for others such as web development. He added that by this time next year he expects very little will be less than 3x the efficiency of January 2026.
Sweeney also said the biggest change AI would bring is faster time from having an idea to playtesting it, which he argued would benefit gameplay.
The announcement follows layoffs at Epic Games in March, which the company attributed to a decline in console sales, its ongoing legal disputes with Apple and Google, and difficulty delivering “consistent Fortnite magic with every season.”

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