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Unreal Engine 4 video shows what Epic hopes next-gen will be capable of

The future of in-game graphics?

UPDATE: Digital Foundry's analysis of Unreal Engine 4 is now live, and includes high quality videos of the Epic engine tech demo in action

Epic has shown the first Unreal Engine 4 real-time tech demo video.

The video, above, called The Elemental Knight, provides a glimpse at the future of in-game graphics, and is an example of what maker Epic hopes next-generation consoles will be able to produce.

In March Epic called on Microsoft and Sony to make the next Xbox and PlayStation 4 as powerful as "economically possible" to ensure both devices "remain relevant for another generation" - at a time when tablets and smartphones are becoming increasingly powerful.

In the video below Epic's senior technical artist Alan Willard takes us through the engine, which if it matches the success of its predecessor will be used by many developers in future games.

Eurogamer's Digital Foundry analysis of Unreal Engine 4, complete with high resolution assets, is due to go live at 2pm UK time.