Epic Games today showed a demo of Infinity Blade 2, the latest game for the iPhone 4S and the iPad 2. The company was one of the few to take the stage at Apple’s press event introducing the new iPhone 4S.

Epic’s subsidiary, Chair Entertainment, stirred a lot of excitement for iOS gaming last year when it launched Infinity Blade, a sword-fighting adventure game. Now the sequel, Infinity Blade 2, will take advantage of the seven-fold improvement in graphics rendering of the A5 chip, which is inside both the iPhone 4S and the iPad 2. Mike Capps, president of Epic Games, and Donald Mustard, creative director at Chair Entertainment, demonstrated the game live on stage, showing off a stunning sword fight between a puny swordsman and a giant titan (pictured). The 3D graphics show that mobile game technology is getting closer and closer to console quality.

“I put those graphics up against Xbox One games for sure,” said Capps. “It’s getting real close to current generation consoles, no doubt.”

The game will support iOS 5 features such as iCloud, which will allow you to transfer profiles and saved games across devices. Mustard said the game is uniquely focused on touchscreen controls, where you can swipe across the screen to simulate a sword thrust. Epic will also work to see if it can make the game compatible with earlier iPhone and iPad models.

Mustard said the new game will have customization features so you can put your own mark on hundreds of different weapons. You will also be able to work in “clash mobs” where you can work together with other gamers in joint battles. If you participate in the “massively social” clash mobs, you can unlock rare weapons and exclusive features.

The game will be available in the App Store on Dec. 1. Chair also announced today Infinity Blade: Awakening, a novella written by fantasy author Brandon Sanderson. That novella is selling for $2.99 in the iBookstore as of today. You can see the trailer for the Infinity Blade 2 game here.

For more on Epic and Infinity Blade, check out our video interview with Capps and Mustard below.