Following last year's Game Awards announcement of an Ōkami sequel, fan speculation immediately centered on Capcom's RE Engine powering the game, given Capcom's role as publisher. IGN can exclusively confirm this, based on interviews with key project leads.

In an extensive interview, Machine Head Works producer Kiyohiko Sakata confirmed the use of RE Engine. Regarding Machine Head Works' involvement, Sakata stated:

Machine Head Works collaborates with Capcom and Clover Studios. Capcom, as the major IP holder of Ōkami, sets the overall direction. Clover Studios leads development. Machine Head Works bridges the gap, leveraging our prior experience with Capcom on various titles, understanding their needs. We also have a history with Kamiya-san. Essentially, we act as a liaison between Clover Studios and Capcom. Furthermore, our team's familiarity with RE Engine is invaluable, as Clover Studios lacks that experience. We're providing crucial support. We also have team members with experience on the original Ōkami, further assisting development.

When asked about RE Engine's appeal and its suitability for an Ōkami sequel, Capcom producer Yoshiaki Hirabayashi succinctly replied, "Yes," elaborating:

We can't divulge specifics yet, but Capcom believes that without RE Engine, director Hideki Kamiya's artistic vision wouldn't be achievable.

Kamiya added:

RE Engine is renowned for its exceptional graphical capabilities and expressive power. We believe fans anticipate this level of quality.

Sakata later hinted that RE Engine might allow the team to realize aspects of the original Ōkami's vision that were previously unattainable:

Today's technology, coupled with RE Engine, enables us to achieve what we strived for back then, and perhaps even surpass it.

RE Engine, or Reach for the Moon Engine, Capcom's proprietary engine initially designed for Resident Evil 7: Biohazard, has since powered major titles like the Resident Evil series, Monster Hunter, Street Fighter, and Dragon's Dogma. While many RE Engine games feature realistic art styles, the prospect of its application to Ōkami's unique aesthetic is intriguing. Capcom's development of the REX engine, a successor to RE Engine, with gradual integration into the existing RE Engine, suggests the Ōkami sequel might incorporate some REX elements.

A full Q&A with the Ōkami sequel's leads is available, providing further insights.