Silicon Knights Sue Epic GamesSilicin Knights is suing Epic Games over "unspecified allegations" concerning the Unreal Engine 3 that Epic licensed out to the developers. The main allegation of the lawsuit concerns late delivery of update versions of the Unreal Engine 3, causing chaos with Too Humans development schedule, which in turn led to its infamous E3 showing last year (almost everyone who saw the demo was complaining about just how bad it looked). Silicon Knights also takes issue with the fact that "Epic apparently was able to achieve a very usable version of the Engine for the Xbox 360 - the version that it kept to itself, for use only on its Gears of War game". Silicon Knights also states it has now almost phased out the Unreal 3 Engine code from Too Human and is instead using its own custom-created engine. Mark Rein, vice president of Epic Games, says "This morning we were served with a lawsuit by Silicon Knights. We believe the claims against us are unfounded and without merit and we intend to fully defend against them." Meanwhile, president Of Denis Dyack of Silicon Knights issued the following statement: "We stand behind everything in our complaint and believe it is highly unfortunate that Epic forced us into this situation... Epic simply refuses to acknowledge the inadequacies of the Unreal Engine 3 code it provides to its licensees and refuses to accept the fact that its code has caused serious damage not only to Silicon Knights, but a number of other developers in the industry. We look forward to successful resolution of our claims in this court proceeding."