PlayStation Universe has an article that attempts to resolve an age-old question - which developer's engine is better? In the Red Corner, we have Crytek's CryEngine 3, and in the Blue Corner, we have Epic Games' Unreal Engine 3.
With the Unreal Engine 3, developers have access to a wide collection of 3D party plug-ins including FaceFX, SpeedTree, and Morpheme. These partnerships with 3rd party software developers allows Epic's engine to support many world class simulators and sandbox creation and editor tools. For example, studios using Unreal Engine 3 have access NVIDIA PhysX, which offers cloth and destructibility physics, as well as Autodesk Kynapse, which handles complex AI.
On the flip side, Crytek built nearly all CryEngine 3 tools and editors in-house. Boasting everything from Ocean Wave Technology to CryPhysics, Crytek has created an engine built for complex simulations and visual prowess. What was once king of high-end PC gaming, will now be enjoyed on your PS3. Crytek CEO Cevat Yerli stated that CryEngine 3 is "not just a little improvement upon CryEngine 2, it's actually a significant rewrite towards a console engine."