See that up there? That's Square Enix's tech demo for its new Luminous Engine. And it looks absolutely fantastic. I don't know if Agni's Philosophy will end up being a real game, but regardless, the tech demo was pretty exciting. And those visuals... Daaaaaamn. If there's one thing Square's good at, it's at making beautiful games.
It's very pretty but honestly, if I hadn't seen it with the caption "next-gen engine", I probably would have just assumed they were using the current-gen to its fullest potential. I think the graphics in XIII are already pretty excellent and anything more than that is probably just going to be lost on me. I mean, I recognize that it looks like an FMV cutscene would now and I guess I can guess at the implications of this (better looking cutscenes that don't have to be compressed video files, more room on the disc, etc.) but while it's impressive looking, I don't really... notice enough of a difference to be really amazed.