During an interview with IGN at Gamescom, Square Enix revealed they are currently in talks with Avalanche Studios to use their Just Cause 3 engine for Final Fantasy XV.
It won't completely replace the Luminous Studio engine currently being used but will have parts of it added in to help enhance the game overall.
Quote:
“We’ve got really great hopes for this discussion. What we’re going to be talking about is possibly being able to use their really unique, really high level amazing technology they have in their studio and using it as an add-on to enhance the quality of a certain specific part of our Final Fantasy XV game ...
When I saw what the guys at Avalanche Studios were doing with Just Cause 3, what really impressed me was how they have that vertical element to their games and the technology they use to achieve that kind of thing,” he said. “So I really felt that if we could borrow some of their technology and have some help on what they do to achieve that and put that into our Final Fantasy XV engine, we could see a lot of really great breakthroughs in what we’d be able to do with the game.”
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http://www.ign.com/articles/2015/08/...m-just-cause-3