Can we create a 2D game in Unreal Engine with 2D images?
Yes, you can. The easiest way to get startet would be to use the 2D-Sidescroller-Template integrated in UE4 I would say. And about the files - you can use png( I know, because I already used them too^^) Although png doesn't show up in the meshes section because it isn't a mesh - it's a papersprites
Maybe take a look at this tutorial-series: https://www.youtube.com/watch?v=AEkulrzz6Is&list=PL4vARnfO6MOjqrK5YMI1EwYcZSR7ycD9h
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