Epic runs Unreal Engine 3 on iPhone. Really.

Have an iPhone? Want to blow away your friends who swear by their PSP (or even their Xbox 360 or PS3)? Epic today announced that they are running Unreal Engine 3 on the iPhone in an upcoming RPG, but you can hit the App Store now and download a free demo of it that’s simply stunning. Titled “Epic Citadel” the demo shows off what will be used in “Project Sword”, which will be an actual RPG being developed by Epic’s Chair studio. If you have an iPhone, check out the demo. Here are some screens captured off an iPhone 4: