Remember Project Draco? It's that Kinect dragon flying game from the producer of Panzer Dragoon. It seems that the creators, Groundig, have licensed Epic's Unreal Engine 3 to bring dragons to life.
"Because this is Grounding’s first high-definition game, we looked at many technology options and picked Unreal Engine 3 as the best solution," said Yukio Futatsugi, director at Grounding.
"We began development in September 2010 when Microsoft first announced the title. While our team size is only 15 people and we had merely one year from the start of the project, the productive tools and efficient processes of Unreal Engine 3 meant we could come up with a high-quality playable demo in a very short time."
With the press release for this announcement came four screenshots. They won't blow you away or anything, but it's good to see more of Project Draco coming.
The release says that Project Draco is scheduled for release in 2012 by Microsoft Studios on Xbox LIVE Arcade