"The next installment of the Mass Effect trilogy will be powered by Unreal Engine 3, Epic vice-president Mark Rein has said.
The popular Unreal Engine 3 has built up a sizable base of licensing support since its 2006 release. The engine stands apart from its predessesors by way of numerous capability advances, including renderer support covering several complex techniques like HDRR, per-pixel lighting and dynamic shadows.
After using it for the first two Mass Effect titles, UE3’s impressive tech has convinced Canadian studio BioWare to use it as a base for the upcoming Mass Effect 3."
Considering Mass Effect 2 had praise from reviewers like IGN " Visuals areahead of the competition " Heres hoping Epic do some more updating of the engine to stay in touch with Behemoth Alan Wake and technically impressive Halo Reach.
http://www.develop-online.net/news/34328/Mass-Effect-3-confirmed-to-run-on-Unreal-Engine-3