Gears of War and Unreal Tournament creators Epic Games will bring competitive multiplayer sword-based combat, powered by its Unreal Engine, to the iPhone later this year with slash-em-up Project Sword.

Epic's Mike Capps and Donald Mustard‚ÄĒhe of Shadow Complex development fame‚ÄĒshowed off the first- and third-person slasher at Apple's event in San Francisco this morning, demonstrating how players can meet up in multiplayer sessions via the iPhone's Game Center matchmaking service.

Mustard explored a colorful medieval world, showcasing its impressive graphical detail before engaging in battle with Capps. The game looked sharp, smooth and playable with nothing more than a few swipes of the screen. Game Center-powered achievements popped onscreen as the Epic Games' developers battled. It looked good.

Project Sword is due to hit the iPhone this holiday season.