Sega has become the latest publisher/developer to license Unreal Engine 3, today adopting Epic Games’ powerful engine for use in upcoming next-gen projects developed in North America. Sega hasn’t divulged exactly which titles will be using UE3, but details are expected to be announced later in the year.
“SEGA is pleased to arm our developers with the sophisticated tools contained in Epic Games’ Unreal Engine 3,” said Simon Jeffery, President and COO, SEGA of America, Inc. “Its versatility and power will help SEGA create incredible gaming experiences.”
“Epic is extremely excited to be working with SEGA,” said Mark Rein, Vice President, Epic Games, Inc. “SEGA has a long history of innovation and leadership in our industry and we’re honored that they’ve chosen to use Unreal Engine 3.”
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Matt is a fair-minded reviewer and lover of games of all platforms and types, big or small, hyped or niche, big-budget or indie. But that doesn't mean he will let poor games slide without a good thrashing when necessary! 
Epic FTW! LOL So many that have been jumping on. The biggest question is going to be whether Sega uses UE3 for Condemned 2 and, potentially, another Virtua Fighter. I think if they used it on Virtua Fighter, then there wouldn’t possibly be a prettier fighting game for a while!
Absolutely, a Virtua Fighter powered by UE3 would be insane. Although the release said the UE3 engine was licensed for use with North American development, so I don’t think a VF game would be in the cards since that’s developed in-house in Japan. Sega’s new North American development initiative includes stuff like Condemned 2 and their upcoming Marvel and Alien games, etc., so it’ll probably be used for those since not much has been announced for any of them to begin with. Maybe their mystery RPG with Chris Taylor and GPG will utilize UE3, you know that’d be amazing…
But Matt…they could always use UE3 to make a new Virtua Quest! =D