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I thought i was looking at live action for a split second at the start of that video.
Why does an RC car game need to be that photorealistic?
With the original they wanted the immersion part to feel like you are actually racing with toy cars and make everyday / mundane surroundings feel unique from this perspective and scale — I guess they still want this to be the main fun factor / appeal.
It uses unreal engine, it’s the default option