Ars Technica's Frank Caron was able to chat with Hees Kyung, global product manager for Microsoft, and was able to ask regarding Lost Odyssey. According to Kyung, their team encountered some problems with the Unreal Engine 3:
The issue was that Epic kept updating the versions, so it was hard to catch up. For example, if they released Unreal Engine 3, version 6.1, which has certain requirements and limitations for graphics, you wouldn't have the tools. It was hard to get the tools and instruments necessary to produce the most updated versions of our software.
Kyung also mentioned some language barrier problems with their staff - Mistwalker is a Japanese company. Add that to the updates and anybody will probably have a hard time keeping up.
We've heard what the other devs (Silicon Knights and Digital Extremes) had to say about Unreal Engine 3. We'll have to wait and see what Epic Games plans to do, though the other devs don't seem to have any plans of suing like Silicon Knights. Stay tuned for further developments.
http://xbox360.qj.net/More-engine-problems-Mistwalker-Studios-talks-Unreal-Engine-3-woes/pg/49/aid/101165
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