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Crytek introduced CryEngine 3 at the 2009 Game Developers Conference, held from March 25 to March 27 and demonstrated it on the Xbox 360 and PlayStation 3 consoles. The new engine was being developed for use on Microsoft Windows, PlayStation 3, Xbox 360, and Wii U. As for the PC platform, the engine is said to support development in DirectX 9, 10, and 11. As of June 1, 2009, it was announced that Crysis 2 would be developed by Crytek on their brand-new engine. CryEngine 3 was released on October 14, 2009.

On March 1, 2010, a new tech demo of the engine was released for the i3D 2010 symposium, which demonstrates 'Cascaded Light Propagation Volumes for Real Time Indirect Illumination'. On June 11, 2011, the Australian Defence Force revealed that Navy personnel would train on a virtual landing helicopter dock ship made using the CryEngine 3 software. As of July 1, 2011, the Mod SDK version of CryEngine 3 specifically to create custom maps, mods and content for Crysis 2 is available on Crytek's website. Crytek also released a free-to-use version of the CryEngine for non-commercial game development. It was released as of August 17, 2011 under the name CRYENGINE® Free SDK.

Crytek announced on September 9, 2011, that they would be using CryEngine 3 to bring the original Crysis to consoles. It was released for Xbox Live and PlayStation Network on October 4, 2011.

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