Game Industry Shifts to Unreal Engine 5

By BAEK SEO HYUN Posted : July 1, 2026, 15:00 Updated : July 1, 2026, 15:00
Customization demonstration of 'Mabinogi Eternity' [Photo: Nexon]

The gaming industry is moving away from proprietary game engines that have been in use for years, opting instead for Epic Games' latest graphics engine, Unreal Engine 5. While switching engines involves years of development, significant costs, and royalty fees associated with commercial engines, many companies see it as a necessary step to maintain long-term competitiveness in live services.

On July 1, Nexon announced that it will unveil the engine replacement project for its online game 'Mabinogi,' titled 'Mabinogi Eternity,' through an alpha test in September.

'Mabinogi Eternity' is a project that began in 2023, aimed at completely replacing the existing proprietary engine, PlayOne, with Unreal Engine 5. The goal is to modernize graphics and game systems while preserving existing users' characters and growth data, laying the groundwork for long-term service.

The version set to be released in September will be an alpha test, allowing players to experience some of the results of the engine switch. Further development of the overall project is expected to continue afterward.

Min Kyung-hoon, the general director of Mabinogi, emphasized at the recent 'Mabinogi 22nd Anniversary Fantasy Party' that "the unchanging goal is to ensure that existing users' data seamlessly transitions to Eternity," adding that "this project is essential for the enduring growth of Mabinogi."

Krafton is also working on transitioning its flagship title, 'PUBG: Battlegrounds,' to Unreal Engine 5. Since its launch in 2017, PUBG has been in service for nearly nine years, and the engine switch aims to enhance graphic quality and improve the efficiency of new content development.

The cases of both companies illustrate that this transition is not merely about improving graphics. Industry experts view it as a necessary adaptation to maintain the competitiveness of long-term live games.

The existing proprietary engines were designed based on the hardware environment and technological standards of their time, leading to limitations in applying the latest graphic technologies or adding new content as time goes on. As updates accumulate, maintenance costs rise, and development speed inevitably slows.

In contrast, Unreal Engine 5 offers cutting-edge rendering technology capable of delivering lifelike graphics. It is easier to adapt to the latest PC and console environments and significantly enhances the efficiency of new content creation and maintenance. This is why many global AAA games are adopting Unreal Engine 5.

While companies like Pearl Abyss have managed to secure technological competitiveness with their proprietary engines, many game developers operating long-term live services are increasingly opting for proven commercial engines for better development efficiency and maintenance.

However, the cost burden is not insignificant. Epic Games' Unreal Engine can be used for free during development, but once a game's cumulative revenue exceeds $1 million, a 5% royalty on excess revenue must be paid. Successful large-scale games could face royalty obligations amounting to tens or even hundreds of millions of won.

Despite this, game companies are choosing Unreal Engine 5 over proprietary engines because it can lead to greater long-term cost savings. Considering the development personnel and maintenance costs required to continually improve proprietary engines, as well as the need to adapt to the latest hardware and support new platforms, utilizing a proven commercial engine is seen as more advantageous in terms of productivity and operational efficiency.

An industry insider noted, "In the past, proprietary engines were a mark of technological competitiveness, but now the focus is on how quickly and reliably content can be developed and serviced. The engine switch can be viewed as a foundational effort to ensure games can be serviced for over the next decade."



* This article has been translated by AI.

Copyright ⓒ Aju Press All rights reserved.