Epic Games vs Steam: AI at the Heart of the Conflict

Epic Games and the New Era of Unreal Engine

At Unreal Fest 2026 in Chicago, Tim Sweeney, the CEO of Epic Games, unveiled a groundbreaking version of Unreal Engine. This game engine now integrates advanced artificial intelligence technologies, such as Claude from Anthropic and Gemini from Google. These tools enable, among other things, the instant generation of assets and the relighting of scenes through simple natural language commands. However, shortly after this announcement, Sweeney expressed his dissatisfaction with Steam's AI disclosure policy during an interview with PC Gamer. He described this policy as "really irresponsible," arguing that it unfairly stigmatizes games that use AI.

The contradiction between the announcement of an AI-rich engine and Sweeney's criticism of Steam's AI policy did not go unnoticed. Many pointed out this inconsistency, but it seems to have little effect on the CEO of Epic Games.

Steam's AI Disclosure Policy

Since 2024, Steam has required game studios to declare the use of AI to generate content visible to players, such as graphics or dialogues. An update in January 2026 clarified that this obligation does not apply to AI tools used solely internally, such as those facilitating code writing or automating quality testing. In other words, Steam demands that players be informed if the elements they see in a game are the product of AI.

Sweeney's Arguments Against This Requirement

Tim Sweeney advocates for the abolition of this requirement, presenting two main arguments. First, he believes that players react negatively to AI labels, which penalizes studios that use these tools to enhance their productivity. This forces developers to choose between remaining competitive and maintaining their visibility on Steam, the largest PC game distribution platform. Second, he emphasizes that smaller studios, which rely more on AI to compensate for their lack of resources, are particularly disadvantaged by this policy.

The Impact of AI Labels on Game Sales

A study by Game Oracle reveals that games displaying an AI label receive, on average, 53% fewer reviews than those without such a label. For studios with a good reputation on Steam, disclosing the use of AI can lead to a sales drop of 40% to 60%. For independent studios, whose survival often depends on the initial success of their games, these figures can be catastrophic.

In this regard, the real asymmetry of AI disclosure is highlighted: it punishes honest studios that choose transparency while allowing those who do not disclose their use of AI to slip through the cracks.

The Business Stakes for Epic Games

It is crucial to note that the recently unveiled Unreal Engine 6 directly incorporates AI technologies like Claude and Gemini. Epic Games also uses tools such as Nano Banana and GPT Image in its development processes. Reducing the stigma associated with the use of AI in games could therefore boost sales of Unreal Engine 6. This commercial dimension does not escape the analysis of PC Gamer, which highlights Sweeney's direct interest in this controversy.

During the presentation in Chicago, demonstrations of on-the-fly content generation were conducted, showing how to furnish a virtual apartment or relight an entire urban scene with a simple text request.

A Question of Transparency and Rights

The real question this situation raises is that of transparency towards consumers. By imposing disclosure, Valve defends the players' right to be informed about how games are made. In contrast, Sweeney opposes this idea, arguing that it harms innovation and the competitiveness of studios. This divergence of views reflects significant commercial stakes, as well as ethical questions about the role of AI in the video game industry.