Today Grounding Inc . announced a licensing deal to use the Unreal Engine in their dragon-based Kinect game Project Draco Project Draco has been a mystery since first hinted at in 2010, but we now know it's coming to XBLA in 2012.

Take+to+the+downloadable+skies.

Big+battles+await.

There+can+be+only+one.

That+beast+is+much+bigger+than+your+dragon.

Alongside this news comes the game's first four screenshots. Take a look:Curious about this unknown company's pedigree? Grounding's director, Yukio Futatsugi, was a core designer on Panzer Dragoon and Phantom Dust.What do you think of this first glimpse of the downloadable title?