In a nutshell: As the launch of next-generation consoles approaches, developers are alreeady at work creating new games or porting old ones to the new hardware. Many games run on Epic's Unreal Engine, so the publisher has added support for PS5 and the Series X. Intial features for the upcoming machines are in beta and Epic will be adding more in the months before their release.
Epic Games has updated Unreal Engine with support for PlayStation 5 and Xbox Series X. The company indicated that version 4.25 of the game engine only has "initial support" for the next-gen consoles to get the ball rolling for developers. Epic promises that "optimizations, fixes, and certification requirements" will be rolling out in future updates. In the meantime, it is considered to be in beta testing.
Support for PS5 and XBSX are not the only changes coming with Unreal 4.25. It Niagra VFX system leaves beta with the update. The visual effects system was tested and "proven" in Fortnite. Now Epic says it is "production-ready." It has improved performance and stability. It also has a "polished" UI and other enhancements.
"New features include the ability to create complex, large-scale particle effects such as flocking and chains, and to have particles react to music or other audio sources—all in real time."
The Chaos physics and destruction system has some features that have gone into beta as well. Chaos now "supports destruction, static mesh dynamics with collisions, cloth, hair, rigid-body skeletal controls for items such as ponytails, and scene queries."
Several other changes have come to Unreal Engine including enhanced HoloLens 2 support, LiDAR point cloud support, improved shading models, and more. Check out the patch notes for full details.