Here. And FFXIII and Versus are still being developed using the White Engine; there was some mistranslation. UE3 will be used for Square-Enix's other franchises but I think they're going to developed an new engine based on UE3 and the White Engine.
White Engine
In 2006, the game ran on the White Engine, an exclusive seventh generationgame 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.
The most important aspect of the engine was that it allowed CGI to be rendered in real-time. It also handled advanced audio processing, cinematic cut-scene transition, physics effects calculations and special effects rendering. The White Engine reportedly used 4 of the 6 synergistic processing elements (SPEs) available to games, of the Cell processor, to achieve near-pre-rendered CGI quality in realtime.
(This part is false). In February of 2007, it was reported that Final Fantasy XIII will no longer be using the White Engine. During the second part of a Nihon Keizai Shimbun interview with Square-Enix President Youichi Wada, he explains that they decided to make the switch from the White Engine to Unreal Engine 3 to deal with rising development costs.
Motomu Toriyama stated that Final Fantasy XIII will be released "as soon as possible". However, an interview with Tetsuya Nomura revealed that he does not believe the game will be released in 2007.
http://en.wikipedia.org/wiki/White_engine
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