There's certainly plenty of good looking iPhone games available these days, but things could be about to get quite a bit more interesting, as Epic has now demonstrated its Unreal Engine 3 (the same one used for games like Gears of War 2) running on the iPhone 3GS and 3rd gen iPod touch to our friend Anand Shimpi of AnandTech. Unfortunately, it hasn't also announced any games or licensees that will be using the engine, but it seems like it has at least managed to get it running remarkably well on the hardware -- albeit in a somewhat limited demo, as you can see in the video after the break. What's more, Epic also reportedly said that it would be showing off the engine running on "another mobile platform entirely" at CES next month, but didn't drop any further hints besides that. Video after the break, and hit the read link for the full scoop.
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