In an open letter to the Gears community, the Coalition confirmed they will be moving to Unreal Engine 5 for its future projects.
they wrote the following "As we look to future games, we’re excited to start shifting our resources to next-gen development using Unreal Engine 5,"
"Gears of War has always been at the front of Unreal Engine development – as a breakout 720p title for Xbox 360 through last year’s 120FPS multiplayer update for Xbox Series X|S – and we’re excited to continue that tradition by developing on UE5 for multiple new projects in the coming years."
However, this news does have a sour note with Gears 5 will only continue to get new content with Operations 7 and 8. The two new Operations will include new characters, new maps, and new special events. They also teased some store updates and promised it will have "exciting new content."
For the future, however, The Coalition warns that shifting to a new engine is a "big undertaking" and it could be a while before we see anything new from the studio by saying "we want to be clear that we will not be announcing any new projects or titles for some time."
Lastly, the studio confirmed after speculation on Reddit that the new IP they're working on won't be a Star Wars game.