That happened in January 2008. In between then and now Epic Games acquired Chair Entertainment and hired ’80s Nintendo spokesperson Howard Phillips. Still no news about new games using their compact Unreal engine.
Perhaps their top secret project is named Shadow Complex. Chair Entertainment recently trademarked Shadow Complex for use with video games. Will it be another Xbox Live Arcade game or a full retail title? Chair Entertainment also has the rights to make a game based on the novel Ender’s Game, which we haven’t heard anything about since the official announcement.