I think a big part of the problem could be the Unreal Engine doesn't suit JRPG's? It was developed with Western games in mind, FPS's, WRPG's, Racers etc. Put a JRPG which demands different system aspects and it causes problems? Hence why it was a technical mess on 360 and... non exsistent on the PS3.
However I think Microsoft money hatted to some extent on the timed exclusivity. I don't think Square-Enix would have published the game as the graphical mess it is unless they had other contracts and deadlines to stick to on top of their own, but hey, non of us really know.
I really don't 'get' Square Enix at the moment, hmm.







