I read something not too long ago on Gaf about how Japanese developers are able to make games for surprisingly cheap if you aren't going for amazing graphics on a technical level. With brute force programming they can make a PS2.5 game as they call it as cheap or cheaper than a PS2 game last gen. I didn't think about it before but perhaps this PhyreEngine is part of the reason they can do it so cheaply.

check my game list above.

I wonder why Western developers don't do the same thing.  They really need to take more risks and their obsession with visuals is skyrocketing the budgets for their games.  I think most people stopped caring about graphics several years ago when characters started to look shocking realistic.  Other than removing the uncanny valley effect, I can't imagine graphics improving much further just because they look so good now.

If that's true then developing PS3 games can be cheaper than the Wii if they don't focus too much on OMG graphics. That would explain NIS and the other niche developers persistence on making PS3 games.

I saw it... All exclusives?

well at least we confirm a shin megami series hitting the ps3.

Hm... I don't think it would have anything to do with Persona 5 actually... at least not if it's a PS3 game.

Atlus already started working on a Shin Megami Tensei engine back in 2005 when they announced Shin Megami Tensei PS3.

I mean, I guess they could scrap that engine... but I don't see why.

SMT PS3 was scrapped and later became Persona 4

From what I remember they talked about it, they said everything was looking great etc and the graphics would be better then ever.

They clearly had an engine unless i'm remembering wrong.  Otherwise they couldn't comment on the art assets.