It seems like Square Enix has shifted their development for Kingdom Hearts III in a big way, according to an interview with Famitsu and director Tetsuya Nomura.
The decision was made to drop the company’s in-house Luminous Engine, in lieu of Epic Games’ Unreal Engine 4, news confirmed by Nomura himself.
“Slowly but steadily, we’re progressing with our development. For a multitude of reasons, we’ve decided to use Unreal Engine 4, mostly because we’ve been facing rendering issues. Epic Games has been very cooperative and helpful, so we’re making great progress.”
He elaborated a bit, “Currently, we’re working on the world selection and the scenario writing. I’m also designing new outfits for Sora and Riku.”
Kingdom Hearts III is currently in development for both PlayStation 4 and Xbox One.