A story in Famitsu talks about a new Square Enix developed Japanese role playing game that will be using the Unreal Engine and will be aimed more at Western audiences.
It seems that the game will be using the Unreal Engine 3 to power its world and that development is being led by Ryutaro Ichimura, who has previously worked on Dragon Quest IX.
The game is being prepared for current home console but Square Enix is also looking to work with Microsoft and Sony in order to deliver the experience to next gen devices.
Recently Square announced that it had entered a new deal with Epic Games that will see the Unreal technology used for a couple of new projects that were not named.
It seems that the development team is made up of about 35 people at the moment and more will be added shortly.
No story details or launch date were mentioned by Famitsu.