Epic Games unveiled the State of Unreal in a keynote speech by CEO Tim Sweeney at the Unreal Fest in Orlando, Florida.
Epic Games unveiled a stunning tech demo with CD Projekt Red, the maker of the Witcher series, as it showed off the tech behind The Witcher 4 on Unreal Engine 5.6. This post will give a taste of the event but our freelance writer Giancarlo Valdes is on the ground in Orlando. He’ll file dispatches with more details and hands-on impressions. And yep, Epic is doing this reveal in the shadow of Disneyworld, as it skipped its traditional State of Unreal at the Game Developers Conference in March.
Epic also showed off AI creator tools for its MetaHuman platform for creating human avatars with realistic faces as well as Unreal Editor for Fortnite (UEFN), which is the haven for user-generated content. UEFN has generated $722 million in revenue paid out to third-party creators to date in the past couple of years. And the Epic Games Store has now paid developer and publisher partners over $2.1 billion since launch.
The State of Unreal just ended, and the audience got a glimpse of the cutting-edge technologies that Epic Games is testing and releasing to help devs and creators build awesome experiences.
The show kicked off with a technical demo from CD Projekt Red — not The Witcher 4 itself, but a showcase of some of the tech powering the new Witcher saga. Epic also revealed the latest on Unreal Engine 5.6, including major performance upgrades to empower teams to build large-scale open worlds that, just like this tech demo, run smoothly on current-gen hardware.
The Witcher 4 Unreal Engine 5 tech demo
CD Projekt Red is using Unreal Engine 5.6 for the Witcher 4.
When Epic launched Unreal Engine 5 three years ago, CD Projekt Red said it would collaborate with Epic to bring large open-world support to the engine. Together at the State of Unreal, now they revealed what they’ve been working on.
The Witcher 4 Unreal Engine 5 Tech Demo follows witcher Ciri, a professional monster slayer, as she explores the never-before-seen region of Kovir in the midst of a monster contract.
The tech demo provides an early look at a number of 5.6’s powerful new open-world features in action — all running on PlayStation 5 at 60 frames per second with raytracing — including the new, faster way to load open worlds via the Fast Geometry Streaming Plugin.
As Ciri explores the bustling market of Valdrest, Epic sees how 5.6 handles busy scenes full of high-fidelity characters and visual effects like ML Deformer. The tech demo also showcases Nanite Foliage — which provides a fast and memory efficient way to achieve gorgeous foliage density and fidelity, slated for release in UE 5.7.
UE 5.6: open world magic and engine-first animation
Epic Games is beefing up Unreal Engine 5.6.
Unreal Engine 5.6 is now available for download! With this release, one of the key goals was to empower devs to build super-high-fidelity, large-scale open worlds that run smoothly at 60 frames per second on current-generation consoles, high-end PCs, and modern mobile devices.
Beyond open world features, Epic made major strides toward a truly engine-first animation and rigging workflow, eliminating the need for DCC round-tripping. Epic also added the ability for devs to author MetaHumans directly within the engine, unlocking a more streamlined and efficient creative process.
With MetaHuman 5.6, the digital human framework leaves Early Access and is now fully embedded in Unreal Engine. Epic updated the Unreal Engine EULA so MetaHuman characters and animation can be used in any engine, such as Unity or Godot, as well as creative software like Maya, Houdini, and Blender so you can expect to see MetaHumans in more places.
MetaHuman Creator now has enhanced fidelity thanks to improved materials, a larger scan database and improved models for processing scan data, plus new authoring workflows that will vastly expand the range of available options for faces, bodies, and clothing.
The update also provides the ability to generate real-time animation from almost any camera or audio with MetaHuman Animator, and expands the MetaHuman ecosystem with new plugins for DCCs, as well as integration with the Fab marketplace.
Unreal Editor for Fortnite: New IP, AI-powered developer assistant
Since Epic launched UEFN just over two years ago, players have spent over 11.2 billion hours
across 260,000 live creator-made islands, which has resulted in $722 million paid out to third-party
creators.
Epic continue to expand the tools and the IP that are available to creators, and starting June 17 creators will be able to build LEGO experiences brick-by-brick using the LEGO Brick Editor.
Exciting new IPs are also coming to UEFN with Squid Game slated for June 27, followed by Avatar: The Last Airbender and Star Wars IP.
Speaking of Star Wars, during the latest Season of Fortnite Battle Royale: Galactic Battle, Epic introduced a Darth Vader NPC that uses conversational AI to respond when players speak to him. Epic is taking what it learned and is sharing the underlying technology with the creator community.
Later this year, the company is releasing new tools for creators to build their own engaging AI-powered NPCs in UEFN. As demonstrated onstage at the State of Unreal, creators will be able to use the new Persona Device to create characters with personalities that players can talk to. And Epic is taking it a step further so creators can not only drive NPC behavior and dialog, but also drive the core game itself.
Another AI tool that will help creators is the new Epic Developer Assistant, which is now available in beta on the Epic Developer Community. Epic built this AI-powered assistant to help you write Verse code that devs can use in UEFN projects. It also provides answers, workflow guidance, snippets, and speeds up the Fortnite island development process.
Finally, the Scene Graph beta launches on June 7. Scene Graph is a new foundational layer for UEFN that unifies editor and runtime views, making all scene elements accessible through Verse. In the editor, it organizes entities hierarchically for fast, flexible world-building—turning repeated items into prefabs for easier management. At runtime, Verse code can modify the scene dynamically, from moving platforms to changing properties on lights. Scene Graph is engineered from the ground up to power the future of UEFN.
Devs can explore all the new updates and improvements coming to UEFN in a blog post. Across the Epic ecosystem RealityScan 2.0 is launching in the coming weeks, which will unify the desktop and mobile versions under the ‘RealityScan’ name. RealityScan 2.0 is packed with new features like AI-powered masking, smarter image alignment, and support for airborne laser scans. CD Projekt Red used RealityScan to capture natural objects in high fidelity for The Witcher 4 Unreal Engine 5 Tech Demo.
Epic also announced that Fab will be available in the Epic Games launcher this summer, making it easier for developers to get Fab content and integrate it into their workflows. Loci joined Epic recently and Epic will integrate its AI technologies into Fab in the coming months to enable automated asset tagging, semantic search, and improved IP moderation.
Updates coming to the Epic Games Store
The Epic Games Store has generated $2.1 billion in revenue for third parties.
The Epic Games Store has now paid developer and publisher partners over $2.1 billion since launch. On mobile, EGS now has a library of 70 awesome games and 40 million installs to date, and it’s on track to hit 70 million by the end of 2025. To give publishers an even better deal, Epic just changed its initial revenue share to 0% for the first $1 million then 12% thereafter.
Netmarble announced that Mongil: Star Dive is coming exclusively to the Epic Games Store on PC in October 2025 as part of the Epic First Run program. The title will soon be coming to mobile as well, so keep an eye out for it on the mobile version of the Epic Games Store.
Pre-loading is launching in September and gifting is coming in time for the holidays, so devs can gift games to friends on PC and mobile. Epic is also opening the Epic Games Store’s self publishing to developers and publishers on Android and iOS in Q3 2025.
Epic Web Shops are coming in July, giving developers an easy way to set up a shop for PC and mobile games’ in-app purchases. Epic Web Shops will enable partners to benefit from industry-leading revenue terms, and pass on added value to players with bonus offers and Epic Rewards.
And last but not least, Epic’s revamped social features will connect its PC and mobile players together with game independent voice chat, text chat, and parties, along with robust game invites for third-party games. This will be the building block for several innovative social features on the Store that will follow.
