I will laugh if Epic ends up making games for the freakin Iphone of all things but not the 3DS. Talk about going to the wrong market!

They are making games for the iPhone...

Ah, then they are as stupid as I thought they were :/

Well, the iPhone is a pretty huge market. From a sales perspective, it's probably not that stupid...

It just seems to me that Iphone is much more of a casual market, by that I mean with its micro games and whatnot, and the fact that most people probably playing Iphone games are the "expanded audience".

I don't really see Epic as much of a handheld game developer anyway, but if anything it seems like they would be a much better fit on the 3DS since it's a far more serious gaming platform. But once again they are gonna be missing out on a huge market simply because they are tech junkies. Oh well their loss I guess.

Exact tech specs is not the point.  Epic doesn't make games, their main product is the Unreal Engine and so they need tech demoes, which happen to be games.  And Epic has set itself up as a premium middleware developer, they make the biggest, baddest engine, and license it to anyone who wants to make the biggest, baddest games, and collect the biggest baddest premiums on it.

The problem with being king of the hill, is that there are others who are constantly playing catch-up, and if you sit around, someone will surpass you.  When they put UE3 on the HD consoles, they skipped the Wii, not because the Wii couldn't handle some iteration of UE, but because other companies had enough skill to create their own Wii engines to compete against UE.  On the HD side, while other companies were making higher end engines that would eventually catch up to UE3, Epic had a virtual monopoly on top of the line graphics for a few years; but now that competitors have caught up, Epic wants to see new hardware so they can make Unreal Engine 4, and move into premium territory again.

When the iPhone came out, Epic saw that as the high end of portable devices and made an Unreal Engine for it, looking to be the king of the hill there, holding a monopoly on high end portable graphics before everyone else can get out there and make their own high-end iPhone engines.  The 3DS isn't trying to be the latest and greatest in handheld technology, so like the Wii, there is enough expertise out there for other companies to make top of the line 3DS engines (like Capcom's MT Mobile); there's too much potential competition for Epic to stand out, so they avoid it.

Epic's whole raison d'être is not to be in the biggest pond, it's to be the biggest fish period, even if it means being in the smallest pond.

i usually don't say this too often but i mean it 100% right now: i really couldn't care less if they make a 3DS game or not

He obviously has no interest in it (shocking, I know :P). Shame really, it's quite a powerful piece of hardware as has already been shown by the demos, like the Resident Evil one:

http://www.youtube.com/watch?v=Es0xReoS2nA