the official press releases by Kaos Studios says that it's problems between the unreal 3 engine and the PS3, which has happened before but i wouldnt be surprised if THQ was bleeding money, some of their games just havent been up to other publisher's standards
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There are so many problems with the Unreal Engine 3 that the developer of it is getting sued. Publicly it gets a lot of praise and support, but behind the scenes a lot of studios are struggling with it because it's so buggy. The developer, Epic, can't even get its own Unreal Engine working without issues on a lot of people's PC's. It's primarily an Xbox360-focused engine at the moment, but even on that platform they're having issues.
It's actually become more cost effective for each studio or large publisher to have its own game engine instead of licensing the Unreal Engine. There's so many quirks, glitches, things that don't work (even if they're supposed to work), things to learn, and so on. Unfortunately, all the PHB's (pointy haired bosses for you people who have never read a Dilbert comic) have been sold on the idea of middleware and buy up an engine that's making everyone poor except for the company that owns it.
Now, in Frontlines case, I'm just not excited about it at all and have no intention of picking it up. It appears to be another run-of-the-mill shooter. I have plenty of those.