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Kennyheart said:
Here:my proof.
http://xbox360.ign.com/articles/102/1028443p1.html

If you read to the bottom of the article it has an update:

Epic's Michael Capps has since clarified his comments, and was less certain whether the next Gears of War would be for the current generation or not. "If we ship a game in the next few years, it'll be Unreal Engine 3," he said, "If we ship a game on next [generation] consoles, it will likely be Unreal Engine 4."

Mark Rein, vice president of Epic, offered further clarification in an e-mail to IGN that stated, "That's a gross misinterpretation of what he [Michael Capps] actually said."