Epic and developer Chair have sold over 11 million copies of the premium iOS game.
Epic formed Impossible Studios out of the ashes of Big Huge Games, which developed Kingdoms of Amalur, back in June.
Epic Games establishes Impossible Studios and announces its first game, Infinity Blade: Dungeons for iOS.
Lightsabers and chainsaws appear in the third and presumably final free major expansion.
Epic Games did a demo today of Unreal Engine 3 running in the Adobe Flash environment. That means games with good 3D graphics will be able to run in web browsers and inside sites such as Facebook without requiring a user to download the game first.