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Personally I think it's a very bad thing. Huge investment required for all that additional modelling work means publishers are going to be wanting a safer ROI. Look forward to endless yearly rehashes of the best selling franchises. Of course people can still make great games with lo-fi art assets, but when your average consumer sees renders like that, their expectations are set a bit unrealistically. All IMO of course.
Next gen console hardware is very impressive. Surely being a game designer is getting harder and harder with more and more intricate textures and models? How long must it take to design some of the static models in that demo? I mean, they're just so detailed....