That split matters, so this piece keeps the two apart.
What Bloomberg reported
Bloomberg's Jason Schreier reported on October 12, 2026, that the title was planned to release in March, with no new launch target communicated to its team. The sources asked not to be named because they weren't authorized to speak publicly.
According to the Bloomberg report, developers were told to adopt an "AI first" production model with tools such as Anthropic's Claude. Humans then manage and guide the output. A game director reportedly told staff in an internal message that there would be "No more hand-written code." The same director said all art would be "generated with full AI workflows."
Bloomberg also said progress had been slower than expected. Part of the reason was that Epic had underestimated how many staff, and how much time, the game would need. Some developers were reportedly stunned on a video call last week. Some joked about asking Claude to fix its own mistakes, and others hoped the directive wasn't serious or would be reversed.
What Epic has said publicly
Epic communications director Jake Jones gave Bloomberg a statement about "AI-accelerated development, led by Epic developers." That statement doesn't confirm the "no hand-written code" instruction. It also doesn't confirm the art workflow, or that AI is the reason for the delay.
Tim Sweeney went further on X. He wrote that a "huge pivot" is underway, with developers being moved around to retool for "maximum AI acceleration." He said the aim is not to do the same work with fewer people. The aim is to let everyone build more and better, and to bring the benefits to all teams using Unreal. That last phrase is the part relevant to developers outside Epic. It suggests that whatever Epic builds internally could eventually show up in Unreal Engine tooling, though nothing public says what, or when.
Disney context
Epic and Disney announced their collaboration on February 7, 2024. It was described as an open, persistent, social universe connected to Fortnite and powered by Unreal Engine. Disney also said it would invest $1.5 billion for an equity stake in Epic. That investment covers the broader partnership. It is not a stated budget for this shooter.
Bloomberg's report says the two companies agreed to a multi-game partnership, and this shooter was meant to kick it off. Neither the game's title, its platforms, nor its format has been announced. Outlets also differ on some details, so treat anything beyond Bloomberg's account with care.
The surrounding backdrop
Ars Technica adds some context:
- Epic laid off more than 1,000 employees in March, citing a downturn in Fortnite engagement.
- Sweeney has argued that AI disclosure tags like Steam's make no sense because AI will be involved in nearly all future production.
- A pre-GDC survey of more than 2,300 game industry professionals found 36 percent used generative AI. Those respondents leaned toward research and brainstorming (81 percent) over code assistance (47 percent) and prototyping (35 percent).
Public reaction has been rough. FRVR reports that replies to Sweeney's post quickly turned against him, with some simply reading "RIP Epic."
What this means for developers
Plenty of teams use AI coding assistants. A directive of "no hand-written code" on a flagship licensed title is a much bigger step. Bloomberg's own framing is that it is the first time a major game company has tried to build a title primarily with AI.
Several open questions will decide whether it works:
- Review and testing. Humans are reportedly managing the output, but nothing public says how generated code and art will be validated.
- Schedule. The delay and the AI mandate happened together. That doesn't prove AI will recover the lost time, and it doesn't prove AI caused the delay. Bloomberg's stated cause is under-resourcing.
- Staffing. Sweeney says the goal isn't fewer people. That is a stated intention, not an outcome, and the March layoffs make skeptics understandable.
- Brand-owned content. Marvel and Star Wars art from generative workflows will presumably face Disney's approval standards. No reporting says how that will work, and speculating would be unfair.
Bottom line
Verified so far: the game is reportedly delayed with no new date, and Epic's CEO has confirmed a broad AI retooling. Still unconfirmed are the exact project mandates and the reason for the slip. For Unreal developers, the thing to watch is whether this internal experiment turns into engine features. For everyone else, it is a live test of how far AI-first development can go on a big, schedule-pressed production.