There is a pretty good post mortem of Stranglehold in the latest Game Developer magazine, and interestingly one of the bullet points under "what went wrong" is Unreal Engine 3.
Quote:
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Unreal Worked really well in giving art a big head start, but keeping up with the code drops from Epic took up lots of time. We did a big merge of all Epic's new changes into our code base about once every three months. This was a difficult and error-prone task, and at times it took the whole team down for weeks while we worked out all the issues. We lost probably two months of time on the project due to completing these merges. In the end using Unreal Engine 3 was still a win, but we should have done merges less often, and found ways to insulate our content creation teams from the downtime.
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I guess we can add Stranglehold to the long list of developers who've complained about Unreal 3. We've also heard a bit from some developers who had no issues at all with the engine, although I'm starting to think that these developers are just playing it nice. It's interesting that at the beginning of the gen it seemed like Unreal 3 was going to be this awesome product that was going to allow everyone to jump into next gen really easily, but that still hasn't happened. It's pretty obvious from the post mortem that this stuff caused a huge amount of grief and is likely responsible for the delays of this game.