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This effect was achieved using overlay materials in Unreal Engine. First a dynamic material is created with an opacity of 0% and set as the model's overlay material. Then this opacity value is lerped overtime to 100%. Once the opacity of the material hits 100% the model is whisked away and deleted off screen.
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After the player has attempted to interact with a number of items an event is triggered on all world items. This event causes any item the player has on their screen to be consumed by static and whisked away. This uses a node in Unreal that returns a bool depending on if an actor was recently rendered. And if it was the static logic previously mentioned will run.
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