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Squilliam said:
Actually being serious now, Microsoft did some nifty updates to the SDK so hes probably speaking truthfully.

 

The Unreal engine is also not optimised for the 360, it's a ported PC engine. By the time Gears 3 is well underway there may be a new version of the engine available as well.

However one would suggest that Epic have made enough profit on the Gears franchise to perhaps consider making their own custom built engine for the franchise, but I guess there are downsides to that option. I'm sure they like their current profit margins.



Never argue with idiots
They bring you down to their level and then beat you with experience