Koei's Jarik Sikat blames Unreal Engine 3 (UE3) for the difficulty with Fatal Inertia on PS3, and he suggests that many other high-profile UE3-based games (pointing to Silicon Knights' Too Human in particular) have been delayed for the same reason.
In response, Mark Rein (VP of Epic Games) defends UE3 and cites Rainbow Six Vegas as an example that UE3 is not the problem: "The bottom line is that making great games is hard work, ... There is no magic cure-all that completely hides the complexity of making world-class high-performance games on complex computing systems..."
"Our engine is not a launch-title technology. If you want to make launch titles you take your previous-gen engine and upgrade. If you want to make stunning true next-gen games like Gears of War and Unreal Tournament 3 (which people who license our engine generally often aspire to) you have to accept that it takes time to learn the intricacies of the systems."
Midway's Steven Allison agrees with Epic and says that Midway has not experienced any exceptional difficulty with making Stranglehold, a UE3-based game.
See the article for full details.