Yesterday at GDC, Epic Games threw down the gauntlet and showed hardware manufacturers what the next generation of consoles needs to be capable of. Mark Rein (VP at Epic) unveiled a tech demo that sported visual effects unlike anything that has ever been seen before. He was clear that what the audience was watching was not possible on the current generation of consoles. The demo was built with an updated version of the Unreal 3 engine, so licensees have access to these tools today. The engine also scales from an iPhone 3GS all the way up to next-gen hardware—which means developers could conceivably make a game that ran on all platforms. Rein closed with a shot across the bow: “If the next game consoles can’t do this, well, Apple increased their iPad [graphic processing speed] by nine times today.” Challenge! Click the link for more images from the demo. [via VG24/7]