Epic Games today announced it has snapped up the Reality Engine, and is bringing Artifical Studios founder / lead engine programmer Tim Johnson in-house. Epic will not continue sales or support of the Reality Engine, but certain aspects of the engine might find their way into the Unreal Engine. Developers who have licensed the Reality Engine will receive a discount on an Unreal Engine 3 license if they choose to upgrade.
AngryDev
AngryDev