Xbox3 coming out this year confirmed.

You may be probably right, UE3 was shown the first time in 2004 (if I remember well), and X360 came out in late 2005...still considering past events it's not always the best forecast approach. I don't completely belive that most developers are ready to jump on next-gen developing yet.

Both Cryteck and Epic are making a big part (if not the most) of their profits out of their engines, it's only natural they're promoting next-gen. And as for Ubisoft they are one of the strongest companies (among with EA, Activision and fist parties) so I guess those will be ready before the others.

However, just to be clear, I wasn't denying your argument, it's just that I'm not 100% conviced.

Next Gen.....Portable time!

"Visit the theater in our GDC booth to see Epic's proposal of what the next generation will be, as powered by Unreal Engine 3.” "

To me Unreal Engine 3 is not next gen, it's current gen. They need to make a new engine from ground up to qualify for the next gen. Unreal Engine 3 is one of the poorest engine out there.

"Indeed, it appears at present that only Epic Games themselves are able to continually improve upon that which has already been achieved"

Dunno about this...Bioware uses a modified Unreal engine for Mass Effect 2 to stunning results!  Without a doubt, ME2 is the bas looking unreal based title to-date...Crysis 2 looks pretty awesome as well, but we will have to see how much the engine can be expanded to do other types of games than just FPS.