Epic has announced that they are working on porting their Unreal Engine 3 to the Apple iPhone platform.
This is the same videogame engine that is used by popular videogame titles like Gears of War 2.
Epic said that early editions are already working on the iPhone platform.
This engine makes use of OpenGL ES 2.0 so it would not be compatible with earlier generation iPhones and iPod Touch devices.
The company could license this ported engine to videogame developers who are developing games for the iPhone.