Where did he said that? Specially given that UE2 is such a bad engine for GC/Wii.
He didn't say that exactly, but the meaning is there. The main point is that Epic won't support Wii development at the moment (or at the time of the interviews if you want to be picky).
http://www.computerandvideogames.com/article.php?id=146449
Before we finish up: did Epic ever get that Wii dev kit?
Mark Rein: (laughs) I can't say, I'm under NDA with Nintendo. But I can tell you that we're not doing, internally any development right now on the Wii. The Wii I'm sure is going to be a fantastic machine and sell really well but it's kind of below - it's not Intel integrated graphics but it's pretty far bellow the kind of min-bar of Unreal Engine 3. If you built a PC with that spec it wouldn't really be capable of playing an Unreal Engine 3 games decently. They're aiming at clearly at different audience that what we are. You know, Unreal Engine 3 can't run on Xbox 1 or PS2 either - and that's not to say that some of our licensees wont find a way to shoe-horn it into that platform, we certainly have some licensees that are doing some experiments in that area and it could very well happen. But that's a really tough job. And one thing that has become public knowledge in the last little while is that Ubisoft's game Red Steel is using Unreal Engine 2, so there will be Unreal Engine games on the Wii. There will be Unreal Engine games on the Wii and hopefully they'll be successful and maybe we'll make a little money from it, but Unreal Engine 3 - that's a little below our target platform.
http://www.joystiq.com/2007/03/08/mark-rein-says-no-unreal-engine-3-for-wii/
"Ummmmm, well, this is kinda a high definition engine. Designed for a certain level of graphics card and certain amount of CPU. You know, I'm sure one of our licensees will squeeze it down into the Wii. The way Ubisoft squeezed Unreal Engine 2 into the PSP," he explained in a little bit more detail exactly why the Wii and Unreal Engine 3 won't become best buddies, "Unreal Engine 3 is designed for a high level shader architecture and the Wii doesn't have that. I mean, you know, it's just not what we've been aiming for, so it's not something we're looking to do or support."