Why a major game studio abandoned its own custom-built engine for industry standards

Cultures · Published 10 October 2026 Swipe more like this →

In short: Eidos-Montréal once invested heavily in the Dawn Engine, a proprietary technology designed to push the boundaries of visual fidelity. Yet, after years of development, the studio shifted toward Unreal Engine 5. This transition reveals the intense pressure studios face when balancing creative ambition against the logistical demands of modern game production.

Founded in 2007 by Stéphane D'Astous, Eidos-Montréal initially distinguished itself through a development philosophy centered on smaller, focused teams working over extended cycles. By 2014, the studio sought to overcome creative limitations imposed by existing software by building the Dawn Engine. Derived from IO Interactive's Glacier 2, this custom toolset was engineered to leverage the capabilities of eighth-generation consoles and PCs, featuring advanced volumetric lighting, dynamic object handling, and an entity system that allowed designers to implement behaviors independently of programmers.

Despite these innovations, the studio eventually pivoted away from its internal engine. By 2022, leadership decided to adopt Unreal Engine 5 for all ongoing projects. The primary motivation was a strategic shift to prioritize content creation over the significant engineering overhead required to maintain and evolve a bespoke graphics engine alongside game development. This move allowed the team to bypass the technical complexities that had previously hindered their production speed and creative flexibility.

The studio's history is marked by significant corporate restructuring and shifting priorities. After being acquired by Embracer Group in 2022, the company faced multiple rounds of layoffs, including the cancellation of a Deus Ex title in 2024 and the departure of long-time studio head David Anfossi in 2026. Today, Eidos-Montréal operates in a collaborative capacity, supporting major projects like Fable and Grounded 2, while moving away from the era of proprietary engine development that once defined its technical identity.

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