Ignition has licensed Crytek's CryENGINE 3 for development of the first game to be published by its London studio.
The title is set to be a combat action adventure for the Xbox 360 and PlayStation 3.
"For us, the advanced cross-platform technologies offered by Crytek were the natural choice," said Ignition CEO Vijay Chadha.
"The comprehensive tools and expert support provided by Crytek, combined with the experience of our team, are already delivering impressive results.
"In particular, the rapid speed of iteration that can be achieved when using CryENGINE 3 Sandbox makes this a tool of choice for anyone seriously intent on delivering AAA cross-platform titles. Ignition has confidence that CryENGINE 3 will help us deliver our objective."
"We're delighted that Ignition London decided CryENGINE 3 is the only engine capable of achieving the vision for their flagship game," added Carl Jones, director of global business development at Crytek.
"Their team is highly talented with ambitions to create truly state-of-the-art games – and from what we've seen already, we're confident their development will showcase and even enhance the technology in CryENGINE 3.
"We always work closely with all our licensees and we look forward to achieving amazing things together with Ignition London in the future."