AnandTech: Epic Demonstrates Unreal Engine 3 for the iPod Touch/iPhone 3GS
What the hell?! Where is my Unreal Tournament 3 on the Mac? Arkham Asylum? Gears of War? You bastards at Epic are pissing me off!!
And they aren't even "planning" to release any UE3 games for the iPhone, but "Mark told me that as soon as CES we’ll see Unreal Engine 3 on another mobile platform entirely. More announcements will happen throughout 2010. This isn’t a platform specific thing, it’s about bringing Unreal Engine 3 to the entire portable market."
So it's either Zune or the iTablet.