343 Industries transitions to Unreal Engine 5 and confirms development of multiple new games

During the Halo World Championship, 343 Industries showcased a technical test of various Halo locations running on Unreal Engine 5. The studio clarified that the footage was not from a new game, but a demonstration of the engine’s capabilities. This transition to Unreal Engine is part of the studio’s broader internal changes.

Previously, Halo games were developed using 343’s Slipspace Engine, which was partly blamed for the delayed launch of Halo Infinite and its slow post-release content rollout. Studio head Pierre Hintze explained that switching to Unreal will accelerate content development and better meet modern player expectations.

Art director Chris Matthews added that Unreal’s Nanite and Lumen technologies will allow the studio to create more immersive worlds. Additionally, using Unreal will make it easier to hire new developers, as it’s an industry-standard engine.

343 Industries also announced internal restructuring, with plans to involve the community earlier in the development process. Hintze emphasized that the studio aims to focus more on delivering results and less on overhyping projects.

Since the 2021 release of Halo Infinite, many key staff members have left the studio, which has also driven the need for internal transformation.