They've been working on it for awhile and are definitely pouring a lot of resources into it. They're working so hard to try to prove the PS3 is superior to the 360 that they're really missing the point. If it's so superior why does it take a massive effort to show it? 135+ man team working years to make something that will in all likelyhood look slightly better than what's on the 360? And that's not even a given considering it's coming out next year and we have no idea what improvements games on the 360 will have by then (EA has their franchises now running at 60fps on the 360, who knows what they can now do if they reduced it down to 30fps and used the extra resources for other things).