Found this article on Next-Gen. Midway has adopted UE3 for all 8 of it's studios.

"Midway decided that multiple studios creating multiple engines for multiple games just wouldn't work in the costly next-gen development environment, so it will be using UE3 across all of its next generation games ("new" generation Wii and handhelds not included here)."

LINK

Of course the article isnt just about Midway, it describes why UE3 is being so widely adopted. This is good to hear. The less time the devs of any game spend on graphics and engines in general, should mean more time to spend on gameplay. So I sure hope this paves the way for better games.

well there are only 2 games(that I know of) that are supposed to be released in 2006 using UE3.

Gears of War - X360 November 12th and PC port later
Robo Blitz - simultaneous X360 and PC launch (according to an interview in June, when asked about a release date, they said "sometime soon" whatever that means)

Roboblitz looks like alot of fun though. And for only 50mb? Who can turn that down?