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Doobie_wop said:

It was developed using the PhyreEngine. It's a free to use engine developed by Sony that helps developers create cheap games withpretty good production values. It's also a reason why the PS3 seems to get a lot of random exclusive JRPG games from Japan. Disgae 3 wasnot developed using the PhyreEngine, so that could mean that Disgae 4 was developed with a similar or lower budget, despite looking much better.

PhyreEngine is open source and DirectX (aka: Microsoft) compliant.   Actually the engine's already been ported to 360 by Codemasters a few years back.

Also, the major costs for the Disgaea games aren't technology related, they're asset related.  Redrawing all those sprites at higher resolution pretty much guarantees D4 was a more costly venture than D3.