Gears developer Epic has snapped up Chair Entertainment Group, who now becomes a wholly owned subsidiary of Epic Games that will continue to focus on new IPs that use Unreal Engine. It recently did Undertow for XBLA.
"Chair's stylised approach to creating games is further enhanced by its ability to stretch our technology in new directions that not only help in creating amazing gaming experiences but also demonstrate the power and versatility of the Unreal Engine," gushed Mark Rein, vice president of Epic.
The team was founded in 2005 and enjoyed 15 minutes of fame with its "award-winning" Xbox Live Arcade title, Undertow. No word on what's next though.