Epic Games delays Star Wars-Marvel shooter, pivots to

Epic Games has indefinitely postponed development of an unannounced Star Wars and Marvel crossover shooter, shifting the project toward an artificial intelligence-centered approach. The game was originally scheduled for March 2027 but has been delayed as the studio reorganizes its workflow around AI tools, according to reporting from Bloomberg.

Developers working on the project have been instructed to implement an "AI first" production model, with specific guidance to use tools such as Anthropic's Claude. The studio plans to generate artwork using full AI workflows as part of the broader development strategy. This represents a significant shift in how the game will be created, moving away from traditional development practices.

Epic Games CEO Tim Sweeney addressed the pivot publicly on social media, framing the change as part of a larger company-wide transformation. He described a major reorganization underway at Epic that involves reassigning developers to prepare for what he calls "maximum AI acceleration." Sweeney emphasized that the goal is not to reduce headcount while maintaining output, but rather to empower teams to create more content and higher quality work across all projects using Unreal Engine.

Sweeney acknowledged skepticism about generative AI adoption, noting that many people wish the industry would return to 2016. However, he argued that as a provider of development tools to the broader gaming industry, Epic must design for current and future realities rather than past preferences. He expressed personal optimism about AI's potential to empower creators and advance the field.

Regarding productivity gains, Sweeney outlined variable improvements depending on the work type. Technical areas of Unreal Engine development have seen roughly 20 percent efficiency gains, while other domains like web development have experienced up to five times faster output. He projected that by early 2026, most development areas will achieve at least three times the efficiency levels seen in January 2025. Sweeney suggested that faster iteration cycles will particularly benefit game design by enabling teams to playtest concepts much earlier in development, addressing what he sees as a key problem in recent major game releases that failed to validate core systems sufficiently.

When asked about accelerating an IPO, Sweeney reframed Epic's objectives more modestly, stating the company's primary aim is to survive the AI transition, help other developers navigate it successfully, and emerge with faster development cycles and improved code quality.

This announcement comes roughly nine months after Epic laid off more than 1,000 employees in March. The studio cited declining console sales, ongoing legal battles with Apple and Google, and challenges in maintaining consistent quality across Fortnite seasons as factors behind the reduction. The shift toward AI-driven development appears connected to Epic's broader strategy for navigating industry headwinds and positioning itself for long-term competitiveness.