At a press event in Tokyo today, it has been
announced that Sony and Epic Games have inked a deal that will put
Epic's Unreal Engine 3 on all PlayStation 3 dev kits. This version
included with the PS3 will not be a full version of the UE3 engine, but
an evaluation version, allowing developers to try out the various tools
in the engine, and decide for themselves if UE3 fits their needs for
future games. If they decide to go through with using the engine,
developers will still have to go through proper channels to get
permission to use UE3.