The footage shows off the technology's capacity for lighting and weather changing techniques.
Separate footage showcases the powerful Unreal Engine 4 that will power next-generation systems like the new Xbox and PS4.
Epic's current graphics tech Unreal Engine 3 powers a host of modern console games, including the Gears of War and Mass Effect titles. It was also used in the iOS hit Infinity Blade and its sequel.
The company is keen to invest in new advancements in the console sector, with tablet and smartphone technology quickly gaining ground on home formats.
Epic introduced Flash support to Unreal Engine 3 last year to enable developers to create high quality browser games.
Unreal Engine 4 has been in development since 2003. Its final build, scheduled for release in 2014, will target next generation consoles.
Scroll though our gallery to see the new, powerful Unreal Engine 4 in action.
Copyright: Epic Games