"No," Rein said. "It's below our [minimum specifications], from what we can tell. We don't have a 3DS, so there's no way for us to verify that," he added, "but everything we've been led to believe is that it's below our min-spec. You couldn't do a game that looks like [Epic Citadel] on it, for example."
He clarified that this means no plans for Epic games, as well as no plans for a version of Unreal Engine for other devs to use. "Like I said, we really don't know enough about it to make a formal comment, but I think if they considered that our engine would be good on it, they would have probably talked to us about it."
As Rein himself noted, the situation could change when Epic gets its own 3DS to experiment with -- but at least for now, upon first impression, the developer apparently considers the new device less capable than last year's iPhone 3GS, since that can run Epic Citadel just fine.