Here’s Epic Games’ trailer from the Game Developers Conference that demonstrates their stunning new engine. Everything you see here is running in real-time, folks- this ain’t a cutscene.

Pretty, eh? All we need now is an announcement about the next generation of consoles- can we expect to see something announced soon? People have been all abuzz about Microsoft placing job postings for hardware architects online, and let’s not forget that the Xbox 360 is coming up on its 6th birthday this year, so it shouldn’t be surprising that the company is probably getting hard at work on the next console. While Playstation’s noble goal to support their systems for ten years certainly paid off for PS2 owners, gamers love shiny new things. But does this look that much better to folks?

Epic isn’t the only company to promote a new engine at GDC, either- Crysis developer Crytek also recently showed off their CryEngine 3. It’s not a slick a trailer as Epic’s, but it certainly must be enticing to developers.