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Nogamez said:
Why wouldnt they just make smash bros 5 using the same engine?

The engine needs to be redone to take advantage of the increased power for the new system. Though they could use the already exsisting game and engine to build a new game on that. ie keep the "upper" level of the engine such as scripting and "handles" the same while changing the "deeper" levels to accomdate the new hardware. So have a development team working on the new engine/in house tools that will be used for all titles for the harware while another team works on the game.