I think the best looking UE3 games (on consoles, of course) are Batman: Arkham Asylum, Mass Effect 2 and Gears of War 2.
Most devs have a lot of problems making the most out of the consoles' capabilities using this engine. There are a few promising games that seem to utilize the engine well like Bioshock Infinite and Bulletstorm, but none of them seem to push the graphics bar like the 3 games I mentioned above, and certainly not like the PS3's first party games do.







