At GDC Europe/Gamescom in Cologne Mike Capps today announced Epic is hard at work on Unreal Engine 4 and has five new games in development, with Develop quoting the Epic president explaining that Epic now has a renewed focus on the PC, saying: "The PC has for too long been a port-to platform." Details on the five games and their target platforms are not offered, but a post on GamesIndustry.biz (registration required) has further quotes from Capps' keynote suggesting that these will not all be full-scale AAA projects, as he says: "At Epic we didn't multiply the studio size by five when we started working on these multiple projects, so you can make some assumptions about the size of those projects." Here's more of his explanation of the new landscape of game development:

"Everyone knows the middle class is disappearing from the console business. Gears of War, I hope will do really well, but a pretty good game doesn't make its money back any more. A game like Homefront sells a couple of million copies and they close the studio, right?

"That's not enough any more. That's pretty depressing. You don't want to see what happens to an industry where it's Call of Duty, Halo and Gears and no-one else has enough money to make any games any more. That's not a fun industry.

"I can't bet my entire company every time I make a game, that's a really dangerous business," Capps added.