The new Unreal Engine 4 by Epic looks to produce incredible graphics while being able to be used on mobile and computer platforms. The demos that we have seen of the new gaming engine do look stunning. The graphics capabilities seem as though they will prove to be ground-breaking yet again, even though the engine isn't finished.
Never mind that fact, says Square Enix, as they have just signed a long term contract to use the new graphics engine. They currently have a license to use Unreal Engine 3, the predecessor of Unreal Engine 4. Epic announced that the contract will encompass several games and Epic Games Japan will provide Square Enix with the best development tools that they have ready.
Unreal Engine 3 is by no means outdated. It still provides incredible capabilities that push graphics cards to the limit. Combine that with the ports to mobile devices that are currently going on and you can see why games are still using that platform. For instance, Epic is working on Gears of War: Judgement using UE3.