When comparing Source vs Unreal Engine 4, the Slant community recommends Unreal Engine 4 for most people. In the question“What are the best 3D game engines?” Unreal Engine 4 is ranked 2nd while Source is ranked 29th. The most important reason people chose Unreal Engine 4 is:
Blueprints are authoring tools designed for non programmers so designers and other team members can help tweak and prototype. UE4's Blueprint scripts resemble flowcharts where each box represents a function or value, with connections between them representing program flow. This provides a better at-a-glance indication of game logic than a simple list of events, and makes complex behaviors easier to accomplish and games a lot faster to prototype.
Specs
Ranked in these QuestionsQuestion Ranking
Pros
Pro Great documentation
Valve's official documentation website is great for newbies. It demonstrates the pros and cons of the engine (and since the website isn't maintained by Valve, but instead the community, the pros and cons are largely unbiased). There are also a number of pages dedicated to entities used within official Valve games and also community-made mods that were turned into full-fledged games by Valve. These pages explain the ins and outs of how most source programming works. There are also guides for Valve's tools which are both included in Source SDK and in any Valve-developed game.
Pro Runs on every potato pc
Since it has precalculated lighting, this engine is great for low end PCs too.
Pro Many basic entities
You don't need to code your own door or ladder etc. You can pretty much use every entity used in Half-Life 2 yourself easily.
Pro Visual logic, no programming
Of course you can program stuff into source but for level design only, source has a really easy input/output system for your level logic (e.g. doors, trigger when player walks into room...).
Pro Has a built-in video capture and editing application
Source includes Source Filmmaker, a video capture and editing application.
Pro Easy way to export or load source models to unity and maps
Pro A visual scripting system for non-coders enables quick prototyping
Blueprints are authoring tools designed for non programmers so designers and other team members can help tweak and prototype. UE4's Blueprint scripts resemble flowcharts where each box represents a function or value, with connections between them representing program flow. This provides a better at-a-glance indication of game logic than a simple list of events, and makes complex behaviors easier to accomplish and games a lot faster to prototype.
Pro Lots of resources to learn from
Epic provides multiple official video tutorials, lots of free example projects and content, an extensive wiki and regular streams showing how to use latest features.
Pro Powerful material/shader system
Allows a texture/material artist or VFX artist to create amazing effects from the ground up.

Pro Free development license, including source code
The engine, including full access to source code, is free to use; a 5% royalty is due only when you monetize your game or other interactive off-the-shelf product and your gross revenues from that product exceed $1,000,000 USD.
Pro Realistic graphics
Pro Developers have full control of the engine and source code
UE4 gives full access to the C++ source code allowing editing and upgrading anything in the system.
Pro Dynamic global illumination with voxel cone tracing decreases the computational power needed
Voxel cone tracing is a similar algorithm to ray tracing, but uses thick rays instead of pixel thin rays to be able vastly decrease the amount of computational power needed.
Pro Easy to use animation blueprints
Unreal Engine 4 is one of the best game engines. It is super easy. It dosent require any use of coding due to Animation Blueprints
Pro Spectacular lighting visuals
Pro Cross-platform editor and export
This engine exports for a big range of platforms including Linux. The editor can be run on Windows, MacOS, and Linux (Early Access).
Pro Active community
Forums have many active and friendly members that are quick to respond and help out. Even staff is very active on forums.
Pro AAA Ready
This is ready to make the next AAA game.
Pro Fast compilation for quick iteration
Recompiling an entire game to test a small change takes up a lot of time. UE4 quickly compiles in seconds instead of minutes improving iteration time by an order of magnitude.
Pro Quick release-cycle
New feature releases can be commonly expected about once a month.
Pro Professional feature set for all aspects of game development
Almost everything a game developer wants has a deep and sophisticated tool waiting for them in UE4. No external plugins are needed to make powerful materials, FX, terrain, cinematics, gameplay logic, AI, animation graphs, post process effects, lighting etc.
Pro Proven track record
Pro No coding experience needed
Cons
Con Only for mods
Normally, you can only use the Source Engine to develop "source-mods" (as Steam calls them), however the developer wiki is correct in saying Valve have a proven track-record for finding source-mods and turning them into fully-fledged games, Black Mesa Source is a good example of this, as it began life as a source-mod available for free, however Valve turned it into a fully-fledged and paid game.
Con SDK is outdated and difficult to use
Source SDK has not been updated in ages, and has instead been "re-released" under different names, e.g "Source SDK 2013 Singleplayer".
It's honestly easier to use the version of SDK included with any Source game, namely Portal 2 or DOTA 2, since both have a variant of Source SDK that is more updated than anything you can find in the tools section of Steam.
Con Very high build size
A blank project will build in to a minimum of 200 MB.
Con Slow
Compared to other engines, UE4 seems to perform various actions considerably slower. Actions like starting the engine, opening the editor, opening a project, rebuilding shaders, updating references, calculating lightmaps, saving projects, etc take long enough to get irritating and end up wasting precious development time.
Con Extremely long build times
Making a full rebuild, including engine can take a good 30minutes. If you plan to use Unreal professionally, you better get some licenses for Incredibuild as well.
Con Hard engine for beginners
This engine not easy for beginners
Con Steep learning curve
Especially when compared to its primary competitor, Unity.
Con No drawcall batching, performance is very bad on mobile
There's no dynamic batching support to minimize drawcalls. There's InstancedStaticmesh concept in UE4, but it's 3d only, functionally limited and requires hardware support which rules out most mobile devices.
Con C++ - oriented development cycle: slow turn-around times
The Unreal Editor is the main place to do stuff (of course), so if someone wants to do a lot of C++ stuff, the compilation and linking turn-around times can be painful. Still they probably are quite fast in comparison to the provided featureset.. Still ,they are far from optimal.
Con Poor documentation
Most of the "documentation" for code is actually just automatically generated from the source. If you're interested in knowing how things are supposed to work, you must either go to their answers site or pay for UDN.
Often their examples won't even compile, since they were written for now outdated versions.
Con Royalty based
5% of profits will go to Unreal after $3000 earned in a quarter.
Con They spend more time adding features than fixing existing ones
Con C# not natively supported
UE4 does not support C# natively, but this can be achieved through MonoUE, although it requires using the MonoUE fork instead of UE itself.
Con Poor source control support
Merge tool is not working.
Con Poor quality assurance on their releases
After each release they almost immediately release a hotfix. And another one. And another one.
Con Unreal Engine crashes a lot if you don't have the required system requirements
Con Sparse Resources for C++
C++ happens to be the main suite for Unreal, yet the documentation is very, very sparse.
Con Extremely poorly designed
The code is a mess.
Everything is connected, a single Actor is 1500 bytes, because it contains a million things that Epic once needed in a game.
Inheritance for AActor: AActor > UObject > UObjectBaseUtility > UObjectBase
Con Difficult for Mac users
If you're installing it on Mac, you simply download Epic games launcher and watch it download nothing endlessly.
Con Tutorials do not go in-depth enough
The blueprint tutorial just teaches how to turn on a light when you press f.
Con Proprietary
Con Not available on Linux
Con No Terrain Editor included
Con Bad support
The epic games team only assists with billing and account issues, not bugs.
Con Terrible physics

Con Frequent crashes
Often the editor crashes interrupting your work.
Con Poor error messages
Con Rarely works
