Activision has decided to switch to the upgraded version of Unreal Engine i.e. Epics's Unreal Engine 3 and it has unannounced to develop action game based on the Unreal Engine 3 technology.

Getting the deed done, Laird Malamed, chief of production for Activision said;
The Unreal Engine is one of the most technically advanced engines on the market and is a perfect fit for our upcoming action game. The engine's robust suite of programming tools will enable our development team to deliver what is sure to be an amazing game experience.
Activision is going to kick off a new start with Epic's most recent Unreal Engine technology and will surely make great games.
The Unreal Engine 3 is the game engine particularly designed to develop games for all next-gen platforms.
Via: palgn