It’s definitely not starting from scratch, it’s just throwing away what they built so far.
To be honest though although I’m not a game dev it does seem like a pretty reasonable decision given presumably the difficulties of maintaining your own engine. This will hopefully allow them to invest more time into different parts of the game and avoid a repeat of the Cyberpunk launch. I wonder if that launch and issues that lead to it was a big part of the drive behind the decision.
That said, I am a bit worried about what seems to be a bit of a consolidation happening with game engines after Unity burning a lot of bridges and now CDPR not moving forward with their in house engine. It’d be nice to see some more competition in this space I think. That’s my layman’s take at least, maybe there are already plenty of options that I’m just not aware of.
The stuff you can do in UE5 just makes it a no brainer for everyone. Especially if you want an object and detail dense environment where lighting is super important. UE5 and cyberpunk is a match made in heaven.
I do home Godot can get similar features to UE5 one date. I’m rooting for those guys.
I’m also a little sad that REDengine is getting scrapped after seemingly finally getting to a pretty decent spot, and I definitely wish there was more competition for Unreal.
That being said, it’s a very understandable decision given not just the capabilities and ease-of-use of UE5 but also its popularity, which means finding new developers competent with it is easier and onboarding is faster.
And as you say, it lets them focus on actually making games.