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Ok my head is about to explode because apparently Capcom licensed the Unreal Engine 3 in 2007 as well.  Damn you to hell Capcom!!!!  Who cares if you have million seller games on the 360, don't you know it's a dead horse and games are going to dry up on it?  There's no use making anymore hardcore games for the machine because 360 users are going to simply stop buying your games to get in on the party game action on the Wii.  Didn't you guys get the memo?

http://www.bit-tech.net/news/2007/02/28/Capcom_licenses_unreal_3_engine/

Capcom licenses Unreal Engine 3

Author: Brett Thomas
Published: 28th Feb 2007

Epic's Unreal Engine family has been made use of in countless games, including some of the most notable of the FPS genre. The newest baby, Unreal 3, has already been used in blockbuster titles like Gears of War. Now, it appears another company is adding its name to the licensing rolls.

Capcom Co., Ltd., makers of both the Resident Evil and Devil May Cry series of games (as well as countless others), has recently licensed the new technology from Epic. Apparently, the company is making an undisclosed game with a North American studio, and the title / subject matter have been pretty well covered up.

Though it's not unusual to cover one's products up until nearer to launch, Capcom has repeatedly made some pretty blockbuster titles. Therefore, one tends to sit up and take notice when a big name like the Unreal Engine is dropped without some context of what it's being used on. Time will tell, we suppose.