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I didn't know LO ran on the Unreal Engine, and I never would have thought so had you not pointed it out just now. I think that serves as a good indicator that this game differentiates itself from (many) other UE3 based games. Come to think of it, the only area I feel shows that this is a UE3 game, is in the Ipsilon Mountains (above the tree line).

(Still, I feel BioShock deserves to be mentioned as a game that stands out from the UE3 crowd as well).