Kingdom Hearts III was announced back at E3 2013, and the game was thought to make use of Square Enix’s Luminous Engine, but that is no longer the case.
Kingdom Hearts III will now be powered by Unreal Engine 4 after issues with the Luminous Engine became too problematic for the highly anticipated action-RPG. The switch in engines seems to have a few issues of its own as well. Kingdom Hearts III‘s director, Tetsuya Nomura, stated “we’re having trouble on some parts as far as rendering goes, but with help from the folks at Epic Games, progress is going safely.” Nomura also stated that he was currently working on story scenarios and new outfits for series heroes Sora and Riku.
Kingdom Hearts III is in development for PlayStation 4 and Xbox One, but there is currently no release date.