Studio vice president Mark Rein told G4 that gamers will be "shocked" by the new engine's capabilities.
"People are going to be shocked later this year when they see Unreal Engine 4 and how much more profound an effect it will have," he told the site during DICE 2012.
The system's predecessor, Unreal Engine 3, powers a host of modern console games, including the Gears of War and Mass Effect titles. It was also used in the iOS hit Infinity Blade and its recent sequel.
Epic introduced Flash support to Unreal Engine 3 last year to enable developers to create high quality browser games.
Unreal Engine 4 has been in development since 2003. Its final build, scheduled for release in 2014, will target next generation consoles.
Watch the Unreal Engine 3 running in a web browser below: