Final fantasy XIII will, in FF custom be using a graphics engine built by Square Enix.
However, Square's Last Remnant won't be using its own "from the groung up" graphics engine, but I cant think of a prettier engine than UE3 for The last Remnant, looks like itll be a $$ saver for them to use Epic's engine.
Also looks like in a misunderstanding Taku Murata says they have no plans to license out crystal tools to others

Doesn't look half bad from the screenshots of the upcoming wii game on the tools' graphics engine. Thanks dope
St0ry