More than a year after Square Enix producer Akitoshi Kawazu pointed out that the company was losing out due to the fact that the technology behind Japanese games is not up to par with that used in the West, the company has signed a deal with Epic to use Unreal 3 Engine.The news release states that, "Epic Games Japan, which supports the company’s licensees locally, worked directly with Square Enix on the new license."
Taka Kawasaki, territory manager of Epic Games Japan points out that, “Many Western games have achieved great success with the Unreal Engine, and this milestone reflects the Japanese development community’s trust in our technical prowess. We can’t wait to see how Square Enix fuses the power of Unreal Engine 3 with its beautiful characters, enthralling storylines and fantastic gameplay.”
Full details here.