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— CH. 1 · THE ENGINE THAT STARTED IT ALL —

Unreal Engine

~3 min read · Ch. 1 of 7
7 sections

  • In 1995, Tim Sweeney began writing the code that would become Unreal Engine. The project started as a tool for his company's first-person shooter game, simply named Unreal. This initial version relied on software rendering or early hardware accelerators like the 3DFX Voodoo Graphics card. Epic Games later licensed this technology to other studios, expanding its reach beyond their own titles. By 2002, the second iteration of the engine arrived with support for PlayStation 2 and Xbox consoles. The final update for this generation shipped in 2005, marking the end of an era for legacy hardware support.

  • UnrealScript served as the native language for authoring game code before the release of Unreal Engine 4. Chris Norden, lead programmer for Deus Ex, described it as super flexible but noted its low execution speed. At the 2012 Game Developers Conference, Epic announced the removal of UnrealScript from future versions. They replaced it with C++ and introduced Blueprints Visual Scripting as a new visual alternative. Simon Peyton Jones joined Epic Games in December 2021 to work on Verse, a functional-logic language conceived by Sweeney. This new language launched in March 2023 within the Unreal Editor for Fortnite and plans exist to make it available to all users by 2025.

  • Epic opened the Unreal Engine Marketplace in September 2014 as a digital storefront for content creators. Prior to July 2018, Epic took a 30% share of sales from assets like art models and sound files. Due to the success of Fortnite Battle Royale, the company retroactively reduced its take to 12%. The engine now charges 5% of revenues over US $1 million for commercial use. This royalty fee is waived entirely for games published exclusively on the Epic Games Store. Some content remains free through previously offered assets and tutorials provided directly by Epic.

  • Jon Favreau and Lucasfilm's Industrial Light & Magic division collaborated with Epic to develop StageCraft technology for The Mandalorian. This system uses real-time rendering to track camera motion around actors on large LED screens. The approach allowed for immediate editing of virtual sets during production. Jon Favreau then shared this technology with Westworld producers Jonathan Nolan and Lisa Joy. By October 2022, Epic was working with groups at over 300 virtual sets across the world. Orca Studios established multiple filming studios using this method during the COVID-19 pandemic when travel restrictions were active.

  • In March 2012, Epic announced a partnership with Virtual Heroes to launch Unreal Government Network. This program handles licenses for government agencies including the FBI Academy and U.S. Army physicians. Projects included an anaesthesiology training software and a multiplayer crime scene simulation. Car companies like Rivian utilize the engine in their infotainment systems. Researchers also used it as a basis for exploring pharmaceutical drug molecules. Cable news networks adopted the technology to support real-time graphics for broadcasts.

  • The National Academy of Television Arts and Sciences awarded a Technology & Engineering Emmy Award in 2018 for 3D Engine Software. The Television Academy granted a Primetime Engineering Emmy Award in 2020 for exceptional developments in broadcast technology. ASIFA-Hollywood presented an Annie Award in 2021 for technical advancement in animation. Game Developer Magazine gave its Front Line Award for Best Game Engine from 2004 through 2012. A Guinness World Record recognized the engine as the most successful video game engine in 2014.

  • Epic filed legal action against Apple Inc. in 2020 claiming anticompetitive behavior regarding iOS App Store rules. The company uploaded a version of Fortnite that violated specific store allowances, prompting Apple to remove the app. Epic threatened to terminate developer accounts which would have prevented updates to Unreal Engine for iOS and macOS platforms. The court agreed to grant a permanent injunction against Apple to prevent this step. This decision impacted numerous third-party developers who rely on the Unreal Engine for their own projects.

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Common questions

When did Tim Sweeney begin writing the code for Unreal Engine?

Tim Sweeney began writing the code that would become Unreal Engine in 1995. The project started as a tool for his company's first-person shooter game, simply named Unreal.

What programming languages replaced UnrealScript in future versions of Unreal Engine?

Epic announced the removal of UnrealScript from future versions at the 2012 Game Developers Conference. They replaced it with C++ and introduced Blueprints Visual Scripting as a new visual alternative.

How much revenue does Epic Games take from the Unreal Engine Marketplace after July 2018?

Due to the success of Fortnite Battle Royale, the company retroactively reduced its share to 12%. The engine now charges 5% of revenues over US $1 million for commercial use.

Which production companies used StageCraft technology developed by Epic Games?

Jon Favreau and Lucasfilm's Industrial Light & Magic division collaborated with Epic to develop StageCraft technology for The Mandalorian. Jon Favreau then shared this technology with Westworld producers Jonathan Nolan and Lisa Joy.

When did Simon Peyton Jones join Epic Games to work on Verse?

Simon Peyton Jones joined Epic Games in December 2021 to work on Verse, a functional-logic language conceived by Sweeney. This new language launched in March 2023 within the Unreal Editor for Fortnite.

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All sources

67 references cited across the entry

  1. 1webUnreal Engine End User License Agreement
  2. 2webEpic launches Unreal Engine 5Brendan Sinclair — April 6, 2022
  3. 3webTim Sweeney Addresses Unreal Engine 6 at Lex Fridman Podcast1 May 2025
  4. 4webUDK - Design Goals of UnrealScript
  5. 5bookIntroduction to Unreal TechnologyJason Busby et al. — InformIT — July 21, 2009
  6. 6webHistory of the Unreal EngineMike Thomsen — February 23, 2010
  7. 7webClassic Tools Retrospective: The tools that built Deus Ex, with Chris NordenDavid Lightbown — October 23, 2018
  8. 8webUnreal Engine 4 - First LookWarren Schultz
  9. 9webEpic's Tim Sweeney lays out the case for Unreal Engine 4Christian Nutt — March 21, 2014
  10. 10newsFortnite's Jessen Talks Minecraft, PC Gaming, UE4Nathan Grayson — July 20, 2012
  11. 11webFor Tim Sweeney, advancing Epic means racing into AR and VRAlex Wawro — March 1, 2017
  12. 12webDive into Epic's announcements from GDC 2023March 23, 2023
  13. 13webAn Epic future for SPJSimon Peyton Jones — November 5, 2021
  14. 14webInterview with Simon Peyton JonesMarch 25, 2022
  15. 15webBeyond Functional Programming: The Verse Programming Language (Simon Peyton Jones)2022-12-12
  16. 16webThe Verse Calculus: a Core Calculus for Functional Logic ProgrammingLennart Augustsson et al. — March 2023
  17. 17webThe Unreal Engine Marketplace is open for businessFraser Brown — September 4, 2014
  18. 18magazineFortnite is making so much money that Epic is giving Unreal Marketplace creators a big raiseAndy Chalk — July 12, 2018
  19. 19webIs Hogwarts Legacy on Unreal Engine 5?Nico Vergara — 2 February 2023
  20. 20webEpic and Unity rev their engines for the next era of entertainmentTim Bradshaw et al. — Financial Times — August 12, 2020
  21. 21webEpic and Unity rev their engines for the next era of entertainmentTim Bradshaw et al. — 2020-08-13
  22. 22webWhat is the best game engine: is Unreal Engine right for you?Marie Dealessandri — January 16, 2020
  23. 23webThe Witcher - A New Saga Begins2022-03-21
  24. 24webCD Projekt will swap REDengine for Unreal Engine 5 to create the next Witcher saga22 March 2022
  25. 25webAfter Cyberpunk 2077's Disastrous Launch, CDPR Is Ditching REDengine For UnrealAshkay Patel — 9 September 2022
  26. 26webCD Projekt Red announces remake of first Witcher gameEd Nightingale — 26 October 2022
  27. 27webSteam data shows the meteoric rise of Unreal Engine for game developmentJoe Foley — 13 February 2025
  28. 28webThe VFX of ‘Fallout': shooting on an LED volume on film, crafting one-eyed digital humans, mixing practical and digital, and moreIan Failes — 2024-06-05
  29. 29webTechnologies Like AI & Unreal Engine Are A Having Big Impact On The Entertainment Business, But Where Will It Go From Here?Diana Lodderhose — May 21, 2023
  30. 30webUpcoming Animated Series 'Zafari' Is Being Rendered Completely With The Unreal Game EngineIan Failes — September 12, 2017
  31. 31webWhy 'The Mandalorian' cites Fortnite dev Epic Games in its creditsJeff Grubb — November 19, 2019
  32. 32web'The Mandalorian': How ILM's Innovative StageCraft Tech Created a 'Star Wars' Virtual UniverseBill Desowitz — February 20, 2020
  33. 33webHow Lucasfilm used Unreal Engine to make The MandalorianOwen Good — February 20, 2020
  34. 34web'Westworld' Showrunners on the Series' Bold New Direction for Season 3Adam Vary — March 12, 2020
  35. 35web'Westworld's' journey into the LED screen revolutionIan Failes — June 25, 2020
  36. 36web'Mandalorian'-Style Virtual Technology Sound Stage Orca Studios Opens in SpainJohn Hopewell — June 3, 2020
  37. 37web'Fortnite' Creator Epic Games Makes Foray Into Movies With Animated Pic 'Gilgamesh'Andreas Wiseman — January 21, 2021
  38. 38webSpire Animation Studios kicks off Epic Games' new Unreal Shorts animated film programDean Takahashi — April 26, 2021
  39. 39webToo Much Volume? The Tech Behind 'Mandalorian' and 'House of the Dragon' Faces Growing PainsCarolyn Giardina — October 22, 2022
  40. 40webLyle, Lyle Crocodile's Real-time VFX brings life to the dancing and singing crocodile.reallusionblog — 2023-06-30
  41. 41webThe real reason Epic landed a $15 billion valuation is not Fortnite's viral video game successErica Yee — December 14, 2018
  42. 42webRivian launches 2nd gen R1 electric vehicles using Unreal Engine for dashboardDean Takahash — June 6, 2024
  43. 43webEpic licensing Unreal Engine 3 for FBI training sim and other 'serious games'Adi Robertson — March 28, 2012
  44. 44webUnreal games engine licensed to FBI and other US agenciesMarch 28, 2012
  45. 45webEpic Games launches Unreal Government Network for serious games applicationsJames Brightman — March 27, 2012
  46. 46webArmy, DHS join forces for virtual training tech for first respondersAllison Barrie — November 21, 2013
  47. 47webUnreal Engine Wins Technology & Engineering Emmy® for Animation ProductionDana Cowley — November 15, 2018
  48. 48webEngineering Emmy Winners AnnouncedOctober 8, 2020
  49. 49webEpic Games' Unreal Engine Will be Recognized at Annie AwardsChris Davenport — March 4, 2021
  50. 50magazineFront Line Awards 2004January 2005
  51. 51magazineFront Line Awards 2005January 2006
  52. 52magazineFront Line Awards 2006January 2007
  53. 53magazineFront Line Awards 2007January 2008
  54. 54magazineFront Line Awards 2009January 2010
  55. 55magazineFront Line Awards 2010January 2011
  56. 56magazineFront Line Awards 2011January 2012
  57. 57magazineFront Line Awards 2012January 2013
  58. 58webDevelop Awards: The Winners In FullMichael French — Develop — July 16, 2009
  59. 59webDevelop Awards: Unreal Engine wins tight raceRob Crossley — Develop — July 15, 2010
  60. 60newsDevelop Industry Excellence Award winners announcedTom Hoggins — July 21, 2011
  61. 61webGame development stars honoured in BrightonMichael French — Develop — July 10, 2013
  62. 62webUnreal Engine 4 Wins Develop Industry Excellence Award for Best EngineDaniel Kayser — Epic Games — July 14, 2016
  63. 63webDevelop Industry Excellence Awards 2017: Best EngineDana Cowley — July 25, 2017
  64. 64webThe Develop Awards 2018: All the winners!Seth Barton — July 12, 2018
  65. 65webMost successful videogame engineJuly 16, 2014
  66. 66webDaily Crunch: Apple removes Fortnite from the App StoreElliot Bell — August 14, 2020
  67. 67webEpic judge permanently restrains Apple from blocking Unreal Engine, but won't force FortniteNick Statt et al. — October 9, 2020