Unreal Engine 3 will have some competition in the next-gen graphics engine department from Emergent Technologies. They already have a version of their engine running on the Xbox 360, and plan for a PS3 version as well.

Talking at the Austin Game Conference, the company announced that it has shipped version 2.1 of Gamebryo, and that the new version features Xbox 360 final platform support. It has also confirmed for the first time that a PlayStation 3 version of the engine is currently in development. In addition, Gamebryo 2.1 adds a visual performance tool, a reduced memory footprint, a memory allocation system and support for Max 8 and Maya 7.

Gamasutra - Emergent Announces Plans, PS3 Version Of Engine