Shanghai-based outsourcing division Epic Games China has opened a new fully-owned subsidiary, Seattle-based Titan Studios.

Titan Studios" core team previously operated as Darkstar Industries, developers of the Sony PSN game Fat Princess. The studio is comprised of "senior developers" who previously worked at Ubisoft, Epic Games, Scion Studios, Blizzard and Lionhead.

The studio is at work on an Unreal Engine 3-based projects, including an MMO.

A rep explained that Cary, N.C.-based Epic Games, home of Gears of War and Unreal Tournament, owns a stake in Epic Games China, meaning the Shanghai location is not a wholly-owned subsidiary and operates separately.

Paul Meegan, CEO of Epic Games China said in a statement, "We believe in creating small, cohesive teams that leverage Unreal Engine 3, our production talent in Asia, as well as our Asian and Western design sensibilities and market awareness."