Niagara Collision to Apply Gameplay Effect?

No, individual actors or even components per bullet would be far too expensive! Don’t rely on the engine’s collision feature for a bullet hell game, instead have a list of all objects and actors the bullets can collide with, then check for collisions yourself. If you don’t want to implement your own solver you can always do traces or sweeps using the physics system.

The new mass framework in UE5 might also be a good fit for this, as it’s meant to update thousand of entities per tick. You can check it out here: Large Numbers of Entities with Mass in Unreal Engine 5 | Talks and demos

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