Yes, but “draw calls” by themselves isn’t a very big deal.
Especially when using modern APIs like DX12, they are highly optimized to be able to issue tons of “draw calls” with little additional overhead.
So, 5 “draw calls” instead of 1, per character, for 50 characters? That’s 250 instead of 50. Compare that to the 10,000 or more that you’ll see during a single frame, and it’s unlikely to be something that shows up on a profile.
Also, the cost of a “draw call” varies wildly by what kinds of things change between the calls. If all your pieces of clothing use an instance of the same material (just with different parameters), those “draw calls” will have much less overhead than if some of the pieces use a different material/shader.
Also, I put “draw call” in quotes, because a modern engine like Unreal re-transforms a lot of the geometry, and also sometimes re-renders it for things like culling checks or early Z. And with ray tracing, the mapping between “draw call” and actual rendered geometry becomes even murkier!
I would not create one mesh for the body and then add a bunch of meshes for the armor. That would totally undo the benefit of one mesh for the character. Instead, you’d pre-compute all the variations you’ll be using, and select the right pre-computed combination. But this is only really valuable if you find out that you’re “draw call” limited.
Static but oriented meshes for swords, shields, and maybe helmets aren’t quite the same, because they don’t need to do skinning, but, again, you should probably try to make sure they all use instances of the same material to reduce the possible overhead. You might also find that it’s marginally faster to get the world space socket position of each hand, and create a single instances mesh object that draws all the weapons at once, if you really want to push it (but this is likely to start paying off at “hundreds, or even thousands,” not “50.”)
Sorry, I don’t know a good tutorial for rigging modular meshes in Blender – most of the Unreal character tooling is for Maya.
That being said – apparently they’re building weight painting and rigging into UE 5.3 itself, so maybe that’ll help. We’ll have to see!