It's kind of stupid for a developer to claim they hit the graphical ceiling on a console considering that everyone more or less acknowledges that because the hardware doesn't expand with a console, it's up to the developers' abilities to work with the resources that platform has available to improve upon the current "best" standard.
It's akin to saying "once our game comes out, there will be no future games that surpass us graphically for the next 6-7 years on the platform."
When put in that context, it sounds like a pretty idiotic or incredibly arrogant thing to say.
As far as making the hardware stutter or play back at less than ideal performance levels; we've already seen that plenty of times this generation with code that wasn't properly optimized for the hardware platform it was developed for. That hardly means the developers "maxed out" the platform. They just didn't use resources efficiently enough.
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