We already know what Epic games is capable off when it comes to building well optimized ground breaking graphical engines, and that's exactly what they are doing with Unreal Engine 3. They recently released a demo video showcasing some amazing new graphical improvements like directional light shafts, high quality depth of field, color grading, cascaded shadow maps, seamless day/night transition, weather effects, point light shafts, material layer blending and more. It's not like these have not been done before, ahem Crysis, but we're guessing this is much more optimized and probably along the same lines of Cry Engine 3 in terms of graphical prowess.
It won't be long before you see all this eye candy in a game, as Epic's upcoming first person shooter, Bulletstorm is powered by the very same engine and hits PC, PS3 and Xbox 360 February 25, 2011. Checkout the demo trailer for yourself below, and yeah, don't forget to switch to HD!