Unreal Tournament III is due for release on PS3 and PC in November, with the Xbox 360 version to follow in 2008. PS3 users will be able to create and play PC-created mods and levels on the console, but the delay on the Xbox 360 version is said to be due to Microsoft wanting to keep complete control over what mods are being sent over the Xbox live network. Epic Games has always said that the Xbox 360 will see user generated content, but Microsoft's restrictions are causing the delay.

User generated content will be created via the Xbox Live Silver Platform, where despite publishers being in charge of the monitoring the content (it will run through their servers), they still need Microsoft's approval to use it. At a Q&A session at Gamefest 2007, the annual Microsoft Game Technology Conference, Microsoft Software Design Engineer Zsolt Math was quizzed on Microsoft's stance when it comes to creating content and was asked whether a developer could construct a level editor on a PC and create levels that were playable on the Xbox 360."Even though nobody has done that, I would highly recommend that," said Mathe.

According to Epic Game's Mark Rein, Unreal Tournament III on the Xbox 360 will also feature fewer maps due to the limitations of the Xbox 360 hardware. "We'll compress some things. But you know, we may have fewer maps on the 360 version…Blu-Ray has definitely given us a lot of legroom."