Update: In an official press release, Epic has stated that Epic Citadel, a special app to showcase the visual effects of Unreal Engine from Project Sword, is now available for download from the App Store.
“This is a testament to the sheer power of iOS devices as up until now, Unreal Engine 3 has typically been used to create high-end gaming experiences on game consoles and computers,” said Epic Games President Dr. Michael Capps. “And we’re not just keeping it to ourselves. We're putting Unreal Engine 3 technology into the hands of game developers all over the world, and we can't wait to see the apps they make next.”
Original story:
The developers behind the industry famous Unreal Engine and games such as Gears of War and Unreal Tournament have unveiled a multiplayer sword-based combat game for the iPhone. The game, Project Sword, is in development by Epic's Chair Entertainment, which created the popular Xbox Live Arcade title Shadow Complex. Project Sword is the first game to feature the Unreal Engine on the iPhone.
Epic’s Mike Capps and Shadow Complex developer Donald Mustard were on hand to demonstrate the game at Apple’s event in San Francisco. The game showed off Apple’s new Game Center matchmaking service.
Project Sword features a lush medieval world. The game appeared sharp looking and smooth playing, as Mustard and Capps fought each other with nothing more than a few swipes of the screen. Game Center achievements even popped up on screen as the two played against each other.
Project Sword is due out this holiday season.

