Arkane Studios, the developer of last year's Dishonored, is switching to CryEngine for its next project. The studio's as-yet unannounced game will use Crytek's engine, instead of Bethesda's own idTech 5 Engine or continuing to use Unreal Engine 3 as they did for Dishonored.
ZeniMax human resources manager Ashley Pierce said in job listings (via IGN) that the studio is working in CryEngine. Bethesda's BattleCry Studios is also using CryEngine for an announced project, according to listings.
We don't know many details about Arkane's next project yet. Co-creative director Raphael Colantonio said that it would feel similar to Dishonored, thanks to branching paths and dynamic choices. He also said that the studio's approach to next-gen will involve more density, to provide more characters, unique animations, and larger areas at any given time.