Epic develops Disney-themed extraction shooter, Bloomberg reports

Epic Games is working on an extraction shooter featuring Disney characters, marking the first game from its $1.5 billion partnership with Disney announced in 2024, Bloomberg reported on April 10. The multiplayer title involves teams defeating enemies to reach extraction points, with a planned November launch. Internal playtesters described the mechanics as unoriginal but expressed hope for a polished release.

Bloomberg, citing sources familiar with the matter, detailed the project as similar to Arc Raiders. Employees at Epic indicated optimism that the studio could refine the game in time. This shooter leads a trio of Disney-linked titles in development, though the others face challenges: the second has drawn mixed feedback from testers, while resources shifted from the third after Disney voiced concerns over progress to Epic executives. Epic's global communications director, Liz Markman, pushed back on the reporting, stating it was 'not reflective of the ambitions of the Disney collaboration.' She emphasized that the teams are 'building a new games and entertainment universe of Disney experiences.' A Disney spokesperson affirmed the company's continued focus on its 'long-term collaboration with Epic,' with plans for a 'transformational games and entertainment universe' unchanged. The news arrives amid turmoil at Epic, which laid off more than 1,000 staff last month. CEO Tim Sweeney admitted shortcomings in some Fortnite modes and Epic Store initiatives, leading to shutdowns including the Counter-Strike-style Ballistic mode next week. Staff on unreleased projects, including Disney efforts, were among those affected and voiced fears over rushed timelines.

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Somber image of an empty Epic Games office with declining Fortnite charts on screens, symbolizing over 1,000 layoffs due to engagement downturn.
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Epic Games lays off over 1,000 employees due to Fortnite downturn

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Epic Games announced layoffs affecting more than 1,000 employees on March 24, citing a downturn in Fortnite engagement that has led to spending exceeding revenue. CEO Tim Sweeney expressed regret in a blog post, noting the cuts along with over $500 million in other cost savings will stabilize the company. Affected staff will receive severance packages including at least four months of base pay and extended healthcare.

In the aftermath of Epic Games' March 24 layoffs affecting over 1,000 employees—many from Fortnite teams—developers have voiced worries about the battle royale game's future. CEO Tim Sweeney called on remaining staff to deliver fresh content while eyeing a shift to Unreal Engine 6, but reactions and backlash underscore the challenges ahead.

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Bungie released its sci-fi extraction shooter Marathon on March 5, 2026, for PS5, Xbox Series X/S, and PC at a $40 price point. The launch has been mostly stable, though some players discovered beta loot carrying over unexpectedly, while the studio addressed datamining and outlined consumer-friendly seasonal passes. An ESRB rating mentioning PS4 and Xbox One versions appeared unannounced.

Eidos-Montréal has laid off roughly 124 employees and cancelled an unannounced open-world game tentatively titled Wildlands, according to a report by Insider Gaming's Tom Henderson. Studio head David Anfossi is also leaving the Embracer-owned studio. The project, in development since early 2019, had consumed significant resources.

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Epic Games has announced that Fortnite's original co-op mode, Save the World, will become free-to-play starting April 16, 2026. This change comes as the company addresses declining engagement in its flagship title. The move aims to attract both veterans and newcomers to the survival crafting experience.

Disney removed 15 PC games from Steam on April 14, including Star Wars: Rebellion and Star Wars: Dark Forces. The move marks the second such action this year, following a delisting of 14 titles in January. Disney has offered no explanation for the removals.

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