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Yes, that's right. You can now download UE3 and make (obviously) non-commercial games with it for free.

What is it?

UDK is Unreal Engine 3 – the complete professional development framework. All the tools you need to create great games, advanced visualizations and detailed 3D simulations. The best tools in the industry are in your hands.

Who's it for?

Anyone. Everyone. You. Unreal Engine 3 has been used by game developers, researchers, television studios, machinima directors, artists and students. If you have an idea that needs to be brought to life in a game engine, UDK is for you.

Why UDK?

Only UDK has the power, flexibility and track record of Unreal Engine 3. These tools have been proven with countless releases and dozens of awards. There is no better way to make awesome games than with UE3.
You don't even need UT3 anymore to play mods. If the modder wants, he can convert it to a stand-alone game using UDK, without needing a license.
The guys from The Ball mod have done it already and you can get it from http://www.udk.com/showcase.html


the words above were backed by NUCLEAR WEAPONS!