Unreal Engine 3 MIA on Revolution?

Epic Games' Mark Rein, in a Q & A session attended by Joystiq Blogger Christopher Grant during the recent GDC, said that we probably "won't be seeing Unreal Engine 3 on the Revolution." Mark implied that the Unreal Engine 2 would be more than sufficient for anything the platform may demand and had yet to be informed on what the final specs for the console would be.

Mark's comments were more towards down-scaling HD projects, such as the upcoming Gears of War, for the console and cited that it would not be very cost effective. We assume that titles will eventually utilize the Unreal Engine 3 on the console, however upcoming titles created specifically with HD resolutions in mind are more than likely not going to see an incarnation on Nintendo's system.