The second version made its debut in 2002 with America's Army This generation saw the core code and rendering engine completely re-written. In addition, it featured the new UnrealEd 2, which was followed later by UnrealEd 3, which was later integrated along with the Karma physics SDK. This SDK was what powered the ragdoll physics in Unreal Tournament 2003 and Unreal Championship. Other engine elements were also updated, with improved assets as well as adding support for the GameCube and the Xbox. Support for the PlayStation 2 console was previously added in UE1.
UE2.5, an update to the original version of UE2, improved rendering performance and added vehicles physics, a particle system editor for UnrealEd and 64-bit support in Unreal Tournament 2004. A specialized version of UE2.5 called UE2X was used for Unreal Championship 2 on the original Xbox platform. It featured optimizations specific to that console. For other platforms, these optimizations were not introduced until UE3. EAX 3.0 is also supported for sound.
On March 24, 2011, Ubisoft Montreal revealed that UE2.5 was successfully running on the Nintendo 3DS.