The dudes at AnandTech got their hands on an exclusive demo of Unreal Engine 3 running on a 3rd generation iPod Touch, and it looks pretty impressive considering this is the same engine that powers Gears of War 2. Although the demo requires OpenGL ES 2.0 which makes it incompatible with iPhone 2G, 3G or older iPod models it is just mind blowing to see the amount of tech the new iPod and iPhones pack under the hood.
At the moment, Epic games is not announcing any sort of iPhone engine licenses nor do they plan to drop into the iPhone App market anytime soon but the engine will be shown off on a new mobile platform at the upcoming CES 2010.
Check out the 15 second video which shows a modified version of unreal tournament running on a 3rd gen. iPod
