MS didn't pay for anything Square said themselves that they were having issues getting the UE3 engine running on the PS3 version. Most devs have had issues with their first game on UE3. This has been true on the 360 and the PS3 in particular why is this surprising?

I don't know... kind of seems fishy how they wouldn't have officially announced this yet.

Maybe that nefarious Micro$oft moneyhatted them into not promoting their own game!

Or you could chose the truthful idea - that the PS3 is hard to work with on UE3, and has caused delays, whereas UE3 is optimized much more for the 360.

so it was a mistake then

You so crazy, stick!

Because it is SE .

They also said that FFXIII is only possible on PS3,  They also said that bringing Exclusive JRPGS on the market is hard considering PS3 small userbase
in NA and X360's small Userbase in Japan (totally forgetting Europe ofcourse) but then announced SOIV exclusive for X360.

I think their is enough stuff that you would not make believe SE anymore and believe their is some money involved.

Unfortunately as MrStickball deftly pointed out, UE3 games always seem to have an issues on PS3. How many times before have we seen multiplatform UE3 games get delayed for the PS3?

The story made Kotaku headlines.

http://kotaku.com/5038677/famitsu-apologizes-for-last-remnant-ps3-date-flub

Well it's not so much then UE3 is optimized much more for the 360... but more that the 360 is more optimized for UE.

The 360's biggest strength over the PS3 thus far is it's ability to run nonspecialized code.