At this year’s State of Unreal 2025, Epic Games delivered a groundbreaking showcase during Unreal Fest Orlando. This event, broadcast in stunning 4K, revealed a thrilling future for developers and gamers alike. The collaboration between Epic Games and CD Projekt Red was a highlight, particularly their shared mission to revolutionize open-world game development with Unreal Engine.
From tech innovations to artistic achievements, the show pulled back the curtain on what’s next. CD Projekt Red’s upcoming title, The Witcher 4, took center stage. Their partnership with Epic aims to merge the beauty of handcrafted art with cutting-edge real-time technology. The result? A living, breathing world that runs beautifully, even on standard hardware.
Let’s dive into the highlights that made jaws drop and imaginations ignite.
The Witcher 4: Technical Power Meets Creative Brilliance
One of the most exciting moments came at the 32-minute mark. CD Projekt Red appeared on stage to discuss The Witcher 4, which is currently in development. They explained that to realize their vision, they needed more than just a great engine. They needed a partner who values the harmony of art and technology. That’s why they teamed up with Epic Games.
A few minutes later, fans were treated to a technical demo of The Witcher 4 running in real time on a PlayStation 5. The performance? A silky smooth 60 FPS with ray tracing enabled. The demo followed Ciri, the fierce monster hunter, as she navigated the vast world of Kovir. Her companion, Kelpie, was by her side.
What made the experience feel so fluid was Unreal Engine’s new multi-character motion matching. This feature allows character animations to blend naturally and seamlessly. Instead of awkward transitions, characters now move like real people—or real horses. Kelpie’s root motion system made every step and gallop believable.
But movement is only part of the magic. The environment surrounding Ciri looked as if it had been pulled from a dream. Dense forests, towering cliffs, and windswept grasslands came to life with Nanite geometry and a brand-new feature: Nanite foliage.
Nanite Foliage: Where Nature Meets Innovation
Unreal Engine’s new foliage system is a technical marvel. It models every leaf, every pine needle, with incredible detail. Yet it remains memory-efficient and lightning-fast. How? Through an adaptive voxel representation that intelligently renders the world based on need, not excess.
This breakthrough means no more faking forests with flat textures. Artists can now create thick, natural environments without compromising performance. The scene featuring Ciri walking through Kovir’s wild woods felt like stepping into a real forest. The lighting shifted naturally through the leaves, and the grass moved gently with the wind.
But the innovations didn’t stop in the wilderness.
The World of Valdrest: Alive and Reactive
Later in the demo, we were introduced to Valdrest, a gritty port town full of life. This area serves as a central hub for fishing, trade, and mining. Players will explore its crooked alleyways, overhear tavern gossip, and take on contracts from suspicious locals.
What truly sets Valdrest apart is how player choices affect the environment. The world reacts not only to quests but also to seemingly small decisions. This reactivity creates a sense of immersion that’s rarely achieved. For example, picking a fight in one part of town might set off a chain reaction in another.
Thanks to Unreal Engine, the characters don’t just look good—they feel part of the world. Dialogues blend seamlessly with movement, and animations adjust in real time to the situation. Whether you’re fighting, exploring, or listening in on rumors, the experience remains coherent and grounded.
A Glimpse Into the Future
The State of Unreal 2025 wasn’t just a celebration of new features. It was a declaration: open-world games are evolving. With Epic and CD Projekt Red leading the way, players can expect larger worlds, more intelligent systems, and richer stories—all powered by Unreal Engine.
From Nanite foliage to realistic character motion, every detail matters. And most impressively, it all runs on current-gen hardware. That alone speaks volumes about the engine’s capabilities.
As game worlds become increasingly complex, Unreal Engine ensures that developers have the tools to build them faster and more beautifully than ever. This year’s Unreal Fest didn’t just show us what’s possible—it inspired us to believe in what’s next.
