Epic Games introduced the Unreal MCP plugin for Unreal Engine 5.8, letting large language models interface directly with the editor through text prompts to generate furniture, build cityscapes or implement player hazards. Michael Lentine stressed that developers stay in control while the tool reportedly reduces complex tasks from months of manual effort to just days, arriving amid persistent debate over generative AI adoption in game development.

What we've shown here today would take months to build by hand, but with the MCP server and Unreal, our artists were able to make all of this in days,
https://x.com/UnrealEngine/status/2067251500900839735
When you lower the technical friction, you can iterate more and make better games.
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Sony confirmed on its July 31 earnings call that it will proceed with ending physical disc production for new PlayStation games by January 2028 despite fan criticism. The move reflects broader digitalization trends, as physical sales generated just over $781 million in fiscal 2025 compared to $6.5 billion from digital games and $8.4 billion from in-game purchases.
Electronic Arts disclosed in an SEC filing that it has obtained every regulatory approval required for its sale, with the company expecting the deal to close on August 4. The transaction will take the gaming company private under a consortium including the Saudi Arabia Public Investment Fund, Silver Lake, and Affinity Partners.
Wuchang: Fallen Feathers will get a sequel at a new studio founded by its creative director Xia Siyuan with 505 Games' support. The announcement comes after reports of team departures from original developer Leenzee and despite the first game's positive reception.