First and foremost, http://cache.kotaku.com/assets/resources/2007/07/SK EPIC Complaint.pdf. That is the entire legal complaint filed by SK. I've read the whole thing, and I gotta say, if it's all correct, Epic is seriously boned. Basically what SK claims is that: Epic knowingly lied about the capabilities of UE3 and sold it to SK knowing they couldn't provide the tools they advertised Epic failed to meet several deadlines. They promised SK a full, working engine no later than 6 months after 360 and PS3 dev-kits had arrived, and this did not happen, which accounts for a breech of contract Epic withheld code and refused to give support and updated code to SK in order to eliminate the competition that licensed UE3. SK points to E3 '06 as an example. They claim that Epic willingly withheld several major functions, builds and updates of the UE3 engine in order to impress the media and consumers with gears of war. They claim that the build of UE3 they were given was no where near the level of the build of UE3 that was displayed running Gears of War, and as such, their game suffered tremendously. SK was forced to completely ditch UE3 because Epic would not provide them with support and give them the code and tools they needed. SK was forced to create their own engine from scratch, setting major delays and costing millions of dollars. Epic promised that the UE3 engine they gave SK was capable of more than just FPS style games, but the tools and code needed to do that was left out, or didn't work. Using the UE3 engine given to them, SK, despite their best efforts, was not able to meet Microsofts most basic performance benchmarks. There are other, more specific claims as well. SK claims that Epic never provided proper multi-threading code, proper streamlined rendering code, and the engine suffered from severe load spikes and the inability to efficiently handle "garbage data." SK claims that Epic illegally withheld all of this code in order to make their UE3 games appear superior to the competition. SK was pushed to the point of either giving up and going out of business, sticking with the crippled UE3 engine and producing a crap game, or starting over from scratch and writing their own engine, which they did. But don't take my bumbling mess for it. Read the complaint yourself. Warning: It's kinda long.