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More info and screenshots
http://www.eurogamer.net/articles/2012-05-17-epic-unveils-unreal-engine-4-with-stunning-in-game-screens
The screenshots above are taken from the 153 second Unreal Engine 4 real-time demo powered by the Nvidia Kepler GTX 680. It shows an armoured demon knight in a mountain fortress. Lava flows as the knight wields a huge hammer as he enters a metal corridor before looking out at mountain peaks. It's designed to show lens flare, distortion, environmental destruction and other fancy graphics techniques.
The engine itself introduces dynamic lighting, which, according to Wired, behaves in response to its own inherent properties rather than programmed effects.




More info and screenshots
http://www.eurogamer.net/articles/2012-05-17-epic-unveils-unreal-engine-4-with-stunning-in-game-screens