Although the iPhone can, Nintendo’s 3DS is not up to par with the Unreal Engine’s minimum specifications, and Epic Games has no plans of building one specifically for the handheld.
Still, it’s just an assumption, since neither Rein, or anyone else at Epic for that matter, has received a 3DS, so for now, they can’t tell for sure.
“It’s below our [minimum specifications], from what we can tell,” said Rein in an interview with Joystiq at GDC Online. “We don’t have a 3DS, so there’s no way for us to verify that,” he added, “but everything we’ve been led to believe is that it’s below our min-spec. You couldn’t do a game that looks like [Epic Citadel] on it, for example.”
“Like I said, we really don’t know enough about it to make a formal comment, but I think if they considered that our engine would be good on it, they would have probably talked to us about it.”
Nothing’s final, though, with Rein adding they’ll know exactly what to do in the future concerning their own 3DS development plans once the handheld’s in their hands.

wait and see i guess.
though the UE3 has not exactly been seen as a systems power!
Yeah, it’s probably all specs related but not power and performance related, because some games on that 3DS look really amazing.
apparently the 3Ds is no more powerful than the wii.
IF sony really are releasing a PSP2 next year, i really hope they go all out, no hesitations, go for the best of the best and really show the world what portable handhelds can do!!!!!