Illustration of Epic's Unreal Engine 6 announcement with AI features and Fortnite cosmetics at a conference in Chicago.
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Epic Details Unreal Engine 6 With AI Tools and Cross Game Cosmetics

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Epic Games announced Unreal Engine 6 on June 17 with generative AI features and plans for portable Fortnite cosmetics. The reveal came during State of Unreal and Unreal Fest 2026 in Chicago. Developer Poncle said it is reviewing a planned Fortnite crossover due to the AI push.

Poncle, the developer behind Vampire Survivors, announced it is reviewing its planned Fortnite collaboration following Epic Games' State of Unreal presentation. The decision came hours after Epic showcased generative AI tools during the event. The studio cited concerns over Epic's use of the technology for game assets.

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Epic Games released a teaser trailer on June 1 for Fortnite Season 7 Chapter 3. The trailer highlights a new tattooed female skin wearing short-shorts and a bikini top. The skin has sparked online discussion ahead of the season launch this weekend.

Singer Laufey has been announced as the headline act for Fortnite's musical spin-off Festival, bringing her tracks, emotes, and a playable character to the game. In an interview, she discussed the unexpected partnership and her recent Coachella debut. The collaboration includes a new karaoke mode and ties into her 'A Matter Of Time' tour.

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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.

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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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.

 

 

 

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