Unreal is used for on-set visualization (see e.g. the Mandalorian) but Unity is frequently used for pre-viz/planning work because you can just literally drag and drop things in and run them (see e.g. the Jungle Book, from the same director).

i feel the money and R&D that will span from that in the unreal engine will allow them to totally crush unity. already today most of the modern games made with unity are 2d or average 3d games.

Most of the modern games today aren't made with the Unreal engine...For example, among triple-AAA studios, EA, Rockstar, Activision, and Ubisoft all use their own engines (note: Activision uses Unity for some of its games).

Epic already makes a few hundred million each year from Fortnite. The relative pittance they get from Hollywood studios isn't even a drop in the bucket and generally won't effect the pace of development of Unreal, though it has driven Epic to put even more effort into making Unreal a better component in Hollywood workflows. However, this effort won't have much, if any, impact on game production since the workflows are completely different.