It looks like with Epic Games' ties with Chair Entertainment have graduated way beyond the latter studio's use of the Unreal Engine 3.

Epic released a press wire announcing that they have acquired Chair, making it a wholly owned subsidiary of Epic Games. Under the terms of the agreement, Chair Entertainment will still retain its name.

Chair Entertainment is best known for their release of Undertow, an Xbox Live title that made waves on the XBLA scene (no pun intended) for its high-quality visuals and gameplay. It's quite the achievement for a 50 MB title. Epic Games, on the other hand, is famed for their release of Gears of War  to the Xbox 360, and Unreal Tournament 3 (Xbox 360, PS3, PC). 

Given that Chair's current project is a game series based of Orson Scott Card's "Ender's Game," novels, it'll be interesting to see just how Epic might figure into the equation. A Lancer rifle for the Battle Room? Why not?