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From Eurogamer:

Capps' comments came in a Q&A session following his speech at the Tokyo Game Show. He began by confirming that Epic has been working on Unreal Engine 4 for the past seven years in preparation for the next hardware generation.

"We're very concerned that the next generation will be massively parallel and most engines won't be able to adapt for that," said Capps.

"If there were a next Gears of War, that will be for the next console generation, whenever that is. If someone knows, please tell me! That's about four or five years away, I think."