They also licensed Unreal's, so not sure what they will be using.
most likely they'll be using it since they used it before and it basicly one of the best engine out there & they dont have time to make one from scratch again and guess if its going to work.

well its graphics are gonna have to fit on the PS3's 256MB of video ram so it should be alittle more on the x64 pc's that means we'll get cool video cards like my two GTX480's wont feel like a melt down anymore.