Images showing off the next iteration of the Unreal Engine have made there way to the web and they are something to behold. Unreal Engine 4 was shown off to a limited viewing during GDC 2012 and was praised for it achievement--these picture are from said viewing. The public will have to wait until E3 to get a look at what Epic has in store for UE4, until then here's an article that gives you an idea along with the screens.
I already think UE3 is powerful and going by the article it seems UE4 is years before its time. Just another reason to look forward to E3 2012.