It looks like the highly anticipated sequel, Kingdom Hearts III, will no longer be using Square Enix’s in-house engine, Luminous, but will instead be using Epic Games’ Unreal engine.
In a recent Famitsu interview, director Tetsuya Nomura stated, “Surely and steadily, and we’re progressing on schedule,”. He continued, “For various reasons, we’ve changed the game engine to Unreal Engine 4, because of which we’ve been facing rendering troubles. But Epic Games has been really cooperative and helpful, so we’re progressing just fine.”
Nomura also mentioned that they are still writing the story and selecting worlds, as well as making new outfits for Sora and Riku. It sounds like there’s still quite a ways to go for this game. I’d expect a release in 2 years at minimum, but it’s good to hear they’re progressing.
You can catch up on the Kingdom Hearts story with Kingdom Hearts HD 2.5 Remix, coming December 2nd for PS3.