Bo_Hazem
Banned
Maybe short term. But it will continue to become more difficult and expensive to keep updating their own internal engines as time goes on. Of course, it will depend on how well they can get UE5 working on their boxes.
That's the job of XDev and other studios inside PS. The shared engine Decima is now used by Guerilla, Kojima (3rd party so far), and now Bend Studios with their new IP. I think similar stuff could happen with Insomniac's brilliant (best) engine as well, or they could become larger and larger and handle those cartoonish and super hero games for Sony.
All studios are becoming very big, that's the "organic" stuff that some laugh at. Bend was a very small studio, now they're in hundreds, same with Housemarque. Those other new, small studios will grow in numbers as well.
UE is not a free engine, so you need to see if it's worth the investment. The larger the project, the larger the cut Epic gets, and probably out of sales as well.