I've seen the Unreal 3 development tools in use. I also know a fair bit on how the engine works (not just graphics, but the object management system, components, physics, sound, AI, etc.) by talking with the developers.
IMHO: Unreal 3 is well worth the $750k price tag.
Yes, given enough time, talent, and effort you could create roughly the same games using 3DGameStudio as you could with Unreal 3. You could also create the same games using Microsoft's DirectX SDK and Bloodshed C++ (both free). The tools just make it *much* easier.
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..I see a lot of indie level developers out there who have really cool ideas, interesting stories, intreging settings and characters, etc...but are hampered by the engine they use.
I see a lot of people with great ideas but no easy way to create them. But it isn't the lack of 3D engines that stand in their way.
Even if you could buy all the AAA tools to create a game (3DMax, Maya, Unreal3, Offset, CryEngine, Blink, Havok, Endorphin, etc.) for $5, you wouldn't be any closer to creating an innovative game then I would be to creating a master work of art with all the paints I own. Tools don't make games, you make games with the tools.
