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I read a bit about the White Engine, the engine Square created to make Final Fantasy XIII. It sounds like a very impressive engine:

http://www.answers.com/topic/final-fantasy-xiii

excerpts:
"The game runs on the White Engine, an all-new exclusive seventh generation game engine built for Square Enix's future games. Both the engine and the game were originally slated to be used with the PlayStation 2 but were later moved to the PlayStation 3."

"One of the main aspects of the engine is that it allows CGI to be rendered in real-time. It also handles advanced audio processing, cinematic cut-scene transition, physics effects calculations and special effects rendering. The White Engine reportedly uses 4 of the 6 synergistic processing elements (SPEs) available to games, of the Cell processor, to achieve near-pre-rendered CGI quality in realtime."