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I think the is a key point being missed here and it's not about XV either, this highlights they have the platform in mind for future projects and they're speaking to Nintendo and Epic over UE4 and porting XV to the engine. KH3 and FFVIIR are being built on UE4, SE maybe looking to utilise UE4 to get used to creating Switch versions of their future games, Octopath already uses it so they already have the kits in hand.