Epic Games today announced an agreement with Chair Entertainment Group, licensing Unreal Engine 3 for all of its present and future titles.

The technology will be used across Xbox 360, PlayStation3 and PC titles, with the first title, Undertow, emerging as an Xbox Live Arcade title later in the summer. Promising some of the most detailed visuals seen in an Xbox Live Arcade title, Undertow features a 15 level campaign and multiplayer modes for up to 16 players - all of which has been delivered in just 50MB.

"The versatility and technological advantages provided by the Unreal Engine 3 have determined it to be our exclusive choice of technology for next-generation development," said Geremy Mustard, technical director at Chair Entertainment. "UE3 will enable our overflowing creative vision to spill into the hands of gamers sooner and at a much higher level of quality."

Mark Rein, Vice-President, Epic Games comments, "We love working with cool independent studios like Chair that are truly focused on delivering value to gamers and creating experiences that break new boundaries in gameplay and creativity. Sure, we love working with the big developers and publishers too, but there's something really satisfying about seeing a young company with great talent doing some awesome stuff with our technology. Undertow is just the first great game you'll see from these guys - prepare to be wowed some more."