When companies make games, they will often use a previously developed Game Engine in order to save time and money within the competition of the game industry. A Game Engine is the main frame of programming upon which the mechanics of a game works. By implementing this frame from the begininning, the company will save time on creating collision detection, animation, sound and how the scenes are rendered within the game among other things.
One of the main advantages of this is that focus can be directed towards the artwork or storyline rather than programming. Additional features can be added to the programming but the core mechanics of the game are still there. For example, Gears of War runs on the Unreal Engine but the camera angles and movement are presented in a different way.
Ideas can be pushed forward and developed without pressure. However creating a completely new game engine also has its advantages. It allows the creators to do whatever they wish and make new features that have never been done before. For example, in Far Cry 2 they have created a new engine in which fire spreads realistically and graphics can be rendered in a completely new way. Had they not created their own engine they would not "be able to push the limits of the current technology" (to quote an interview with the one of the developers http://uk.gamespot.com/video/942192/6185293/far-cry-2-interview-2).
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