Yeah I had forgotten about them too! That was a crazy time in the game industry. I'm not sure if there's a good writeup out there but here's a Google synopsis:I haven't thought about Too Human for a long time! Are there any good write ups on that development drama?
At the time, I always thought it was a bit odd, given there were plenty of UE3 titles that seemed just fine. Mass Effect was a out a year earlier, to pick something comparable.
Essentially Denis (and other developers) at the time publically complained how poorly supported the engine was. So the engine was causing huge delays for games meanwhile EPIC was developing the huge hit Gears of War. It was so bad that Silicon Knights used the incomplete UE3 code as the foundation to create their own engine. Denis said their contract allowed them to be able to do that. EPIC disagreed.
Mass Effect had far higher resources to brute force any issues.
UE3 did wind up good but it was a long road to get there.