The way I understand it and from what I read (I'm paraphrasing here):
Crystal Tools or whatever they started with was a PITA to do anything with. Not to mention, they were having trouble getting help/tech support when things went south/didn't go the way they wanted. All the devs on the engine were busy or weren't in the company anymore. So they swapped, and Unreal actually has a office in Japan now, so they were able to get the help they needed to make it dance right. Seems also Square had bought a license to it a few years back, but until now they didn't use it.
Also developing a engine is a expensive thing, the way I understand it. I THINK square doesn't want to do that again for a while.