From GameSpot:
The power of one of the next-generation consoles was shown today as Sony and Epic Games showed off Unreal Engine 3 running in real-time on the PlayStation 3. GameSpot had the opportunity to see Unreal Engine 3.0 at this and last year's Game Developers Conference, and while undoubtedly gorgeous, one couldn't help but notice that the then-cutting edge PC hardware struggled to run it smoothly. The PlayStation 3 was the first time GameSpot editors have seen the graphics engine running in beautiful, smooth motion, and it's undeniably impressive.