FPS and graphics geeks have reason to be excited, as Epic Games' Unreal 3 engine is currently in the works for the iPhone. With a smooth frame rate and intuitive control scheme, it seems that shooters are soon to be raised to the next level in terms of mobile gaming. Take a look at this gameplay video and judge for yourself.

While countless FPSs have been released on mobile platforms which, to their credit, have played quite impressively, Epic Games hopes to set the bar even higher with their new set up. Kotaku was fortunate enough to get some hands on time with Epic Games and try out their new engine. Check out some of the actual footage below:

Unfortunately for many iPhone users out there (myself included), these improved looks are because the Unreal 3 engine is being designed specifically for the iPhone 3GS, leaving us 3G and 2G users to sulk in envy. 

Read up more on the Kotaku's hands on experience with the Unreal 3 engine.