Right now there is no engine better for a small studio of 3-5 people. Godot is VASTLY overrated, and Unreal gets way too complex too fast.
Right now there is no engine better for a small studio of 3-5 people. Godot is VASTLY overrated, and Unreal gets way too complex too fast.
Unreal is the opposite end of the difficulty curve: where Unity is great for rapid prototyping but terrible for deployment, Unreal is terrible for prototyping and project bring up, but most of your problems for deployment are front-loaded.
Godot is certainly...maturing. It's not without its flaws. I help ship a very widely-used project with it (with a team of 3-5 actual 3D devs that work with Godot) that has many build targets—perhaps one of the biggest Godot projects in production—and I've definitely made cynical comments about it before on this very website. But as we're now in an era of Godot 4, I sincerely think that Godot—because it's built by people who deeply care about shipping great games and tools to build those games with as their P1—will wind up being far more successful than Unity in time. (At least, when compared to Unity's current trajectory and tools, compared to Godot's current trajectory.)
If I was to make a quick & simple 2d or mobile game today, I'd go with Unity. If you want to make something that will require more effort, but work well for years, Godot is better.
UE5 is the choice for anything 3d and complex.
I'd really, honestly, pick Godot 4 before Unity without any hesitation. If I had to pick from anything else that exists, UE5 would be my backup.
I keep wanting to commit to using Godot for projects but I'm unsure which foundation to build upon.