Gamers, Start Your Engines! 6 Top Gaming Engines Face Off
Unreal Engine 3

The Skinny: Developed by Epic Games, Inc.; fully licensable, SDK free for non-commercial projects
You Know it From: Batman: Arkham City, Borderlands, Mass Effect 1 & 2, BioShock 1 & 2, Gears of War series, many many more
The Lowdown: The reigning king of game engines, Unreal Engine 3 has seen amazing support and adoption across just about every platform imaginable. Officially debuting in 2007's Unreal Tournament 3, Epic Games industry-dominating engine of mass destruction has been the platform of choice for triple-A titles on the Xbox360, PS3, PC, iPhone, iPad, Android, Mac, Linux…hell, you probably have a toaster running UE3 games. UE3 earns an extra gold star for even managing to endear itself to Japanese game studios, who've traditionally eschewed Western dev tools and production models.
While Epic's development, improvement, and iteration move forward at a blistering pace, it can be hard to keep track of their build revisions. Today's Unreal Engine might still be number 3, but the UE3 of 2011 is infinitely more robust than its initial 2007 version. Not content to rest on their laurels, Epic continues to push the engine forward: they wowed the crowd at E3 2011 with a demo reel showcasing the amazing capabilities of the Unreal Engine, and UE4 (already late in development) is expected to officially release in 2012 or 2013—just in time for the next wave of consoles and hardware improvements.
Strengths: Unreal Engine 3's greatest strength lies in its amazingly robust feature set. Quick to implement new technology, UE3 supports both DirectX 11 and OpenGL 4.0. Its rendering capabilities are amongst the strongest in the industry, with full support for high dynamic range rendering, per-pixel lighting, soft shadows, tessellation, displacement mapping, bokeh depth of field, multiple reflection modes, and advanced rendering and simulation of soft body objects (like hair and cloth).
UE3 has native support for many top industry middlewares such as SpeedTree and Bink Video (more on them later) and is integrated with Steamworks. UE3 also supports physics engines like Havok and PhysX.
Due to UE3's wide adoption, its toolsets are constantly refined, and the massive online knowledge base and accessible developer community make finding information easy. UE3 is also free to download, and no license is needed if developing for educational or personal use; a small licensing is required for small-scale commercial/indy projects.
Weaknesses: Since Unreal Engine 3 is featured in so many games, it can be tough to pinpoint failings of the engine, or failings of individual games. Some persistent weaknesses are present over multiple iterations of UE3, however. Always quick to innovate, UE3 beat Id Tech 5 to the pop-in party by several years. Also quick to iterate, they manage to keep that Pop-In Fresh, as UE3 games are notoriously plagued by not just texture pop-in, but geometry, object, and terrain pop-in. Prepare to be dazzled as mountains, foliage, and characters spontaneously spring into existence before your very eyes.

"I'm Commander Shepard and this is my favorite store on the Ci-... ooh shiny!"
Another area where the Unreal Engine really "shines" is lighting skin and flesh, creating characters who look either plastic, sweaty, or somehow both. Other aspects of the UE3 lighting model can look a bit funky at times as well, with odd reflective surfaces, jagged shadows, and clipped shadow and light maps.
Coming Soon: Mass Effect 3, Borderlands 2, BioShock Infinite, Tribes Ascend, Dust 514
CryEngine 3

The Skinny: Developed by Crytek; SDK released October 2009, first featured March 2011; commercially licensable
You Know it From: Crysis (console re-release), Crysis 2, Aion
The Lowdown: Originally developed by German developer CryTek for an Nvidia techdemo, CryEngine went on to put the Cry in FarCry, and later the Crysis series of games. It then proceeded to put the Cry in a generation of PC gamers who couldn't get the technical behemoth that was the original Crysis to run in any playable fashion. "Can it run Crysis?" The answer was a resounding "no" for years after its initial release until the current generation of multi-GPU cards eventually wrestled the feisty CryEngine 2 to the ground.
CryEngine v3 may not seem to add much over the already eye-popping splendor of CryEngine 2, but it's a rare successful case of addition by subtraction. The subtraction in this case is the poor coding that hampered Crysis framerates for years. CryEngine 3 is now a multiplatform engine, and 2011 brought us a multiplatform release of Crysis 2 and even a console port of the original Crysis in the revamped engine. It's clear that the new engine is still one of the most capable around, and with the engine fully licensable, we'd love to see more PC-centric developers hop onboard and once again push the power of PC hardware to the max.
Strengths: CryEngine 3 features some of the most technically proficient graphics around. It supports a number of high-end graphical features, including a real-time dynamic global illumination solution fully optimized for current-gen machines; a new real-time soft particle system affected by object collisions, forces such as wind and gravity, and lighting and shadows; volumetric light beams; screen-space ambient occlusion support, a unique deferred shading solution and a high-level "platform-agnostic" shader scripting technology. In other words, it looks basically as good as CryEngine 2, but is far more scalable.

It may not have PC gamers hitting the upgrade button like the original Crysis but Crysis 2 still looks pretty damn good.
The “What You See is What You Play” Sandbox editor is one of the best developer tools around, offering instant feedback. CryEngine 3 also supports AI and game scripting by Lua or Flow-Graph system, integrated physics engine, and a full suite of performance analysis tools.
Weaknesses: Some view CryEngine 3's scalability and newfound console compatibility a step back for the high end features of the engine. While CryEngine 3 remains one of the most advanced high-end graphics engines around, Crysis 2 wasn't nearly the graphical step forward that Crysis 1 was. Of particular concern to enthusiasts is its tepid support of DX11 features (even after a post-release patch for Crysis 2) and stability issues.
Coming Soon: Mechwarrior Online, Sniper: Ghost Warrior 2