From what I know of Unity, the more objects I have in the scene the less the fps. It would be a lot slower having 100 models that consist of 100 polygons than one object consisting of 10000 polygons. Does this not apply to UDK? From what I have seen most games are built directly from hundreds of static meshes in the editor.
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Everything is relative. I don't know if this is still valid for UE3 but check it anyway: http://www.hourences.com/tutorials-mesh-rendering/
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