Developer Codenrama has released a free tech demo which again shows off the free wandering, graphically stunning Unreal Engine for iOS devices. The demo which is very similar to Epic Citadel, takes you on a stroll through a beautifully detailed and accurately lit 3D setting based on the Italian town of Assisi.

So far we have seen a few tech demos but very few games using the Unreal Engine. Codenrama shed a bit of light on what the problem may be.

While developing Castlerama, we had to face the fact that newer devices such as iPhone4s and iPad2s are very different from their predecessors, iPhone3GSs and iPads, in that the former have twice as much memory. In order to have the app run on all devices, we had to compromise quite a bit, pushing the old devices to their limits (risking crash if other applications are left running) while keeping the new devices well behind their capabilities. In the future we believe we will have to develop two versions for each application.

If this turns out to be the case for other developers too, how many versions of games will have to be released to enable a smooth and enjoyable gaming experience across devices? Will we see a universal binary for iPhone 3GS and first generation iPads and then another for iPhone 4 and iPad 2 devices? What happens when the iPhone 5 arrives with additional spec bumps?

Take a look at the video after the break then pop back and let us know what you think in the comments!

[iTunes–Link via Touch Arcade]