Source: Epic Unleashes Unreal Developer KitEpic Games has released the Unreal Developer Kit - a fully functional version of Unreal Engine 3, complete with development tools, that's free for non-commercial projects. That's right, you can create full, standalone games using the UE3 tools and easily redistribute them, all free of charge.
For commercial use, you'll need to buy a $99 royalty-bearing license if you plan to sell your game. There's more expensive full license, but that won't apply to most game developers.
With the Make Something Unreal contest drawing to a close, the UDK is sure to pick up where UT3's mod contest left off in terms of inspiring rising stars of game development. Alongside today's release of the UDK toolset come demo versions of "The Ball" and "Wizzle" built using UDK.
Makes me wish I have skills relevant to game development (other than writing out pages of design notes).