According to the Xbox Wire post, the footage that was already captured was in-engine, demonstrating the power of the Xbox Series X.
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Have we seen Unreal Engine 5 before?
It's unclear whether or not the footage already revealed was actually in Unreal Engine 5, since the post says the team "will" instead of "is" building Senua’s Saga: Hellblade II in Epic's new engine.
Regardless of whether that trailer was built in Unreal Engine 4 or Unreal Engine 5, it looks damn impressive. Although, it would be more impressive if it was using Unreal Engine 4 because then it might look even better when it gets transferred over to Unreal Engine 5.
The Xbox Wire blog post also summarizes the importance of the Xbox Velocity Architecture, which consists of four components: the custom NVMe SSD, a dedicated hardware decompression block, the all-new DirectStorage API and Sampler Feedback Streaming (SFS).
All of these components give developers the ability to eliminate loading times and deliver players an even richer and more dynamic world to play in. We're incredibly excited to see how far Ninja Theory will go with Senua’s Saga: Hellblade II. It seems that Xbox might be making a comeback with its first-party games.