NVIDIA and Epic Games announce the addition of DirectX 11 support to Unreal Engine 3, and that they are showcasing the updated graphical capabilities of the engine at the GDC (thanks Big Download). Here's word:

The new Unreal Engine 3 real-time demo, being shown during GDC exclusively in Epic's booth (Business Suite #400, South Hall), was developed using NVIDIA's GeForce® GTX 500 Series GPUs. It represents Epic's proposal for what the next generation of gaming will look like and sets a new bar for what can be accomplished with Epic's Unreal Engine 3 technology. It also showcases the myriad benefits that DX11 brings to gaming, including complex environments and detailed character models with lifelike movement and animations. The demo is further enhanced by the Epic's collaboration with NVIDIA and use of NVIDIA's PhysX and APEX technologies, including destruction and clothing modules, which enable realistic character interactions with the environment.