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I believe Epic has stated that the Unreal Engine 3 would have to be modified to run on the Wii, and they had no plans to do it. Red Steel was running on a modified Unreal Engine 2. And, when you use an Engine, it's to ease development in certain areas (AI, physics, collision detection, etc). You can use tools in conjunction with others. They have specific tools out for the Wii that are meant to map movements and such to the wii-mote.