Epic says Intel integrated graphics do more harm than good for gaming industry

The surprising statements were given in a keynote speech titled "Avoiding the Pitfalls of the Next Generation," which kicked off the four-day Developer's Conference.

Rein said integrated graphics is not good enough to play the latest games and that "We would all be better off," if Intel exited the graphics market.

In recent days, an increasing share of Epic's revenue has come from licensing the game engine itself. Epic's bottom line could be hurt if a higher number of systems using integrated graphics cuts into the number of people capable of running those engines. Many current games cannot be played effectively on integrated graphics, one notable example being Bethesda Softworks' Oblivion, which is unplayable on many ordinary video cards.