Following the recent announcement of a publishing agreement between SEGA and Silicon Knights, the developer has signed a deal to license Epic's Unreal Engine 3 for use in all its next-gen titles.
"We feel The Unreal Engine 3 is by far the best technology for next-generation systems," said Silicon Knights president Denis Dyack.
"With its advanced graphic pipeline and technical capabilities Silicon Knights will be able to concentrate on delivering content at a production level previously unheard of."
The deal adds Silicon Knights to a growing list of developers who have signed up to use Unreal Engine 3, which includes Timegate, Microsoft Game Studios and Bioware.
"Silicon Knights is a savvy developer that has always created their own technology in the past," said Epic CEO Tim Sweeney.
"It is inspiring that they have now partnered with us exclusively this generation as it re-enforces our belief that we are on the right path for developing the proper tools and technology for creating the best games on the next generation systems."
Silicon Knights' previous games include Blood Omen: Legacy of Kain, Eternal Darkness: Sanity's Requiem and Metal Gear Solid: The Twin Snakes. So far no details of its current projects or which next-gen platforms they're being developed for have been revealed, but an announcement is expected at next week's E3.