I'm surprised it's Unreal 5. I thought fighting games were all on custom engines for some reason. That gives me a tiny bit of hope for Soul Calibur.
So, you'd be surprised then how long it's been for fighting games
not on custom engines.
Tekken 7 and Soul Caliber 6 were both on UE4. Street Fighter 5
& 6 was on UE. Mortal Kombat has been on Unreal engines since MK8 (and was often on RenderWare before that.) Power Rangers Battle uses Unity. The Arc System Works games Guilty Gear Xrd and DB Fighterz were able to do things never before seen in 2D fighting games by using Unreal as a base for its innovative tech. Killer Instinct was on Hex, which was original, but that same engine also powered the Strider reboot.
Development has changed, and custom engines tend not to be necessary unless there's a specific call or goal for developing one. For a long time, off-the-shelf engines were not really suited to fighters and had to be almost completely rewritten to work for what a fighting game designer needed for their game. (Not that there's not a ton of rewriting as it is; many of these games running on a name-brand "engine" are using components but not what people think of "the engine", so for example Netherelm calls its engine "NetherRealm Studios technology" even though has adopted UE4, and Tekken 8 uses UE5 but doesn't much if at all make use of traditional UE5 features like Nanite or Lumen.) These days, a big game engine can work for most types of projects, provided you know how to make it work for your needs.
Heck, these days, for a couple hundred bucks, you can buy fully-produced "engines" which arrange Unreal or Unity to work as fighting game development tools right off the bat.
Fighting game engine with multiplayer support (local & network). 2.5D and 3D modes support.
www.unrealengine.com
Use Universal Fighting Engine 2 (PRO) from Mind Studios to elevate your next project. Find this & more Systems and templates on the Unity Asset Store.
assetstore.unity.com