Or at least that's what Kagari over on neogaf is saying.  Kagari is certainly reputable, but I'm not so sure about whichever blog she apparently sourced this from.

For those not in the know, PhyreEngine is an engine created by Sony themselves, designed to take advantage of the ps3 and all it has to offer.

---

"PhyreEngine is a graphics rendering engine provided under a license that allows it to be used by any PS3 game developers and publishers as well as Tools & Middleware licensees in their products. The engine uses sophisticated parallel processing techniques that are optimized for the Synergistic Processor Unit (SPU) of the Cell Broadband Engine™ of the PS3, but can be easily ported to other multi-core architectures. As a result, PhyreEngine has been newly-adopted by dozens of game studios in the last year, now appearing each month on the PlayStation®Store or on Blu-ray Discs."

---

Numerous released and/or upcoming third party games have been released via this engine, such as Compile Heart's Super Dimensional Game Neptune and Gust's Atelier Totori and Mana Khemia 3.  Word is Nippon Ichi are also using it for Disgaea 4, so Atlus licensing the engine as well wouldn't be a surpise. 

If Atlus is truly working with the PhyreEngine, I'd assume it has something to do with the recently announced Persona 5.

the wrding is "so Atlus licensing the engine as well wouldn't be a surpise.". so kagria ddnt really confirm anythng?

it apears that the only thing released out of this engine so far are psn titles, though i remain interested in what could come out of this, and with atlus at the helm.....guess we will see

That sentence was written by me.  You can see her post via the link.  I was simply stating why the information from the Japanese blog she cited is likely to be true.

Nope.  Atelier Rorona and Mana Khemia 3 have both used the engine.  Codemasters also incorporated elements of the engine into the engine used for Grid and Dirt 2.  I believe the Last Rebellion also used the engine, but have nothing to back that up.

Common theme is that niche JRPG devs like the engine.  Gust, Compile Heart, Nippon Ichi, etc.  Most likely due to their small size and the fact that the engine is free.

Through reading on neogaf this could be on the PSP also.

The engine is indeed crossplatform ps3/psp/pc, but Atlus has already had a heavy hand in PSP development.  I doubt they've have any need or want to license the engine for PSP.  PS3, however, is a whole new beast for them.

cool i can't wait to see more games using this engine, it will make dev's life's so much easier, no excuses now:):)

i heard Gust made Ar Tonelico 3 with this engine.... Might be cool to check out that game when it releases to see how good the engine is.