Here’s a great video covering the beginning of Unreal: https://youtu.be/5U7phg0rPKE?si=UAWIpTQpo1dBEsiy
In short, yes, Tim Sweeny started from scratch, but was inspired by the work being done at id on games like Doom and Quake. Game tech back then required a lot more tech knowledge, but was simpler in the sense that a “complex,” game/engine could be built by 3 guys working over email and IM.
Modern day Unreal Engine is _a lot_ more complex, and building something like UE5 from scratch would take years.
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