Autodesk has acquired the game engine, Bitsquid
"With the acquisition of Bitsquid, Autodesk is bringing expertise in 3D game development and proven game engine technology in house. We are significantly expanding our portfolio of game making tools, complementing our middleware and 3D animation tools: Autodesk® 3ds Max®, Autodesk® Maya®, and Autodesk® Maya LT™ software. Across Autodesk, this technology will fuel new product development in our Media & Entertainment business, and enable a new class of design animation tools."
Check out the rest of the Official Autodesk Announcement for more barely committal marketing speak.
Here are some samples from Bitsquid games:
Magicka: Wizard Wars
Frank Delise (director of game solutions at Autodesk) discusses the acquisition in a little more detail.
We're talking about it HERE.
Offical bitsquid Site
The question is just who will they be challenging? I had the feeling like Autodesk is trying to get a better integration with Unreal Engine and Unity (ShaderFX materials), but they might want to crush or hinder the competition in the future.