Following the Game Awards announcement of an Ōkami sequel, speculation immediately arose regarding its game engine. IGN exclusively confirms that the game will indeed utilize Capcom's RE Engine, based on interviews with key project leads.
Machine Head Works producer Kiyohiko Sakata confirmed the RE Engine's use, explaining Machine Head Works' role as a bridge between Capcom (IP holder and director of the game's overall vision) and Clover (lead developer). Sakata highlighted Machine Head Works' prior experience with both Capcom and director Hideki Kamiya, along with their expertise in the RE Engine, which Clover lacked. He also mentioned the involvement of team members with experience on the original Ōkami.
Capcom producer Yoshiaki Hirabayashi succinctly stated that RE Engine was crucial, emphasizing that Kamiya's artistic vision wouldn't be achievable without it. Kamiya himself added that the engine's renowned expressive capabilities are expected by fans.
Sakata further teased that RE Engine allows the team to realize aspects of the original Ōkami's vision that were previously unattainable due to technological limitations. He suggested the sequel will surpass the original in many respects thanks to the engine's capabilities.
RE Engine, originally developed for Resident Evil 7, has powered many of Capcom's major titles, including the Resident Evil series, Monster Hunter, Street Fighter, and Dragon's Dogma. While typically associated with realistic visuals, its application to Ōkami's distinct art style is highly anticipated. Capcom's development of a successor engine, REX, with gradual integration into RE Engine, suggests the Ōkami sequel might incorporate some of its features as well.
A full Q&A with the Ōkami sequel's leads is available for further details.