Unreal Engine is already being used for virtual sets, famously on productions such as the Mandalorian, but also increasingly on many others.
The truly game changing aspect of Unreal Engine, and the thing that now makes it much more of a threat to traditional filmmaking, is that its graphics are rendered in realtime.
Want to set your film in Morocco when you live in New Zealand? No problem. Want to stage a huge space battle with lots of frickin’ lasers? You got it!
From the article By Simon Wyndham