I have noticed that there are some good looking games on the iTouch and iPhone these days and I’m thinking they could even get better looking. Epic has recently demonstrated its Unreal Engine 3 (the same one used for games like Gears of War 2) running on the iPhone 3GS and 3rd gen iPod touch to Anand Shimpi of AnandTech.

Check out a the video and see for your self: