Yep the White Tools engine was made to be immensely powerful to the point that SE wanted near CGI quality gameplay but that is no longer happening. Versus however is using quote what nomura said in the interview "an enhanced version of the engine" where the interviewer pointed out he was referring to the white engine.
I am going by memory now with Nomura saying he wanted to use the full capabilities of the PS3 for Versus and this was before FFXIII was even announced for 360 (I know this because I visited my family in Tokyo March last year) so chances are the FFXIII to 360 decision had already been made internally.
If it jogs anyone's memory and are able to find a scan for the 360 fanboy who thinks I am lying it is the one where he said he was shocked about the scale of Versus when he saw the world map.
