As that development of the next Unreal Tournament has begun today.
Still unnamed, the next Unreal Tournament will be developed "in public" with direct input from fans shaping the game. The actual code and art assets will be developed by a small team of veterans who'll share their progress regularly through Twitch livestreams. Fan feedback will then be solicited through the game's forum.
All code and art assets will be available freely on GitHub and the game itself will be 100% free with no micro-transaction, paid DLC or any other hidden costs. The game will support PC, Mac and Linux.
Epic will also build a marketplace for the game where content makers can share and sell in-game content such as mods, maps and skins. Earnings from the marketplace will be split between the content creator and Epic; and that's how the company plans to recoup its development costs.
Needless to say, "many months" are still needed before the game reaches a playable state.