this post was submitted on 17 Sep 2023
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Before Godot 4 the 3D engine was pretty far behind, think early 2010 teach. With Godot 4 it got an insane upgrade which puts it in par with Unity as far as I understand (not a unity expert), but still behind Unreal (then again, everything is behind Unreal.)
Unfortunately it takes multiple years for a 3D game to be developed, so it'll be a while before we see actual released 3D games with Godot 4.
Sonic Colours Ultimate was made before Godot 4 was out but it doesn't look bad at all.
What exactly put it behind? Bad performance?
Not many tools supported out of the box. Its beauty comes in its modularity, so anyone could have always made an add-on - but that takes time and money, what most small devs don't have (but Sega and Tesla could).
Then more recently the devs have had time, and so could make these first-party - and very recently much more stable long term funding, so I'd expect these tools to improve rapidly.
All that being said you could toss a 20 million polygon default cube in UE5 and it'd look/run pretty good