This is made possible by the [PSP2]’s multi-core CPU and shader-based multi-core GPU, which delivers roughly four times the performance we’ve seen on other platforms.
As developers, we love Sony’s console-style operating system, which provides sufficient control over memory and other system resources.
Tim Sweeney,Epic Games CTO

VIDEO: Unreal Engine surges forth on PSP2 | Game Development | News by Develop

Unreal Engine 3 NGP Tech Demo Video from GameVideos