Chair Entertainment has signed a deal with Gears of War developer Epic Games to licence the Unreal Engine in upcoming Xbox Live Arcade title Undertow.
Chair will also use the engine in other Xbox 360, PlayStation 3 and PC games to be developed in the future.
"The versatility and technological advantages provided by the Unreal Engine 3 have determined it to be our exclusive choice of technology for next-generation development," commented Geremy Mustard, technical director for the studio.
Undertow promises a 15 level campaign and multiplayer support for 16 players, all within the 50MB limit of XBLA games.
"We love working with cool independent studios like Chair that are truly focused on delivering value to gamers and creating experiences that break new boundaries in gameplay and creativity," said Mark Rein, VP of Epic Games.