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I admit to understanding very little about game programing relative to some people on this forum. However, from what I do understand, the TEV on Nintendo systems is very different from how textures work on a traditional GPU setup. Thus, very few people take advantage of it (this includes Capcom). In a technical sense, I don't think there'll be anyone outside of Factor 5 who can challenge Nintendo on one of their own consoles.

Thus, I definitely agree the comment was more related to the art design than anything else. The artwork for MH3 is fantastic.