Epic, creators of Unreal Engine are just plain showing off. The above screenshot is taken from THE most beautiful handheld game I have ever seen and they are giving it away free on the App Store.
Epic Citadel is as much a tech demo in what can be done with Unreal Engine 3 on the iPhone as it is a brilliant handheld gaming experience. It has one of those classic moments very early on, where the video stops and you stare at a still screen before realising everything you just watched was in real-time and the screen has only stopped moving because YOU are in control. It is REALLY that good.