I guess we'll see?? Seems like the only people likely to use the "Killzowned" engine, are high budget developers that don't already have reliable engines to use. That rules out EA and pretty much all the multi-plat titles obviously. I imagine if a developer really wanted to make a great looking game, without spending a fortune, they will likely go the route of the Unreal Engine given it is also a graphical power house, is much more commonly used, costs less, and will be available for multiplat titles.
If they want to make the engine proprietary to the PS3, there will not be many developers using it at all. The money is with multi-platform titles and the Wii/360 right now when it comes to software. Developers that are not first party to Sony would be foolish to use this engine and shut off the larger selling markets.
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