Ray Nakazato, president of Feelplus, discusses the collaboration between his studio and Hironobu Sakaguchi's Mistwalker in development of Lost Odyssey. On the topic of using Unreal Engine 3 as it was being developed:
As Nakazato said earlier, the team started without Xbox 360 hardware or rendering technology. "Unreal 3 was at the cutting edge at the time. Also, the PC version was available before 360 existed. So we actually used the PC version before the 360 was available, and we have a great toolset."
On the other hand, "Using the Unreal Engine is also a bad thing. In Japan, those who are used to JRPG engines have a different style. They have their own philosophy. But Unreal 3 Engine also has its own philosophy. Both are inconsistent and incompatible. If we knew that earlier, we could have a consensus that we should use Unreal 3's method and philosophy... but we just applied our old philosophy." Overall, he said, the integration did not go well.