Codemasters has announced that Damnation, described as a "vertical shooter" mixed with puzzle oriented platform levels, as being slated for release in late 2008. The game will feature a steampunk alternate-history setting, huge open environments, vehicular combat, multiplayer elements, and will be powered by Unreal Engine 3.
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sources:
http://xbox360.ign.com/articles/857/857318p1.html
http://www.gamespot.com/news/6187267.html?part=rss&tag=gs_news&subj=6187267