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CGI-Quality said:

OK, I just had my first race, and do see where some of the visual complaints come from. A tad of aliasing, especially on some of the shadows, but in-game driving graphics look about what I expected, and the replays don't look really much different than the racing portion. If you're concerned that it doesn't look too different than Prologue, don't fret. Aliasing is improved over Prologue, as are textures and car details.

My current grade: 9/10

Best looking racing game thus far, and definitely Gran Turismo.

After playing a few more hours I have to say I think my view (on the visuals) is improving. It was an 8/10 now I think is more in line with your score.

It also seems that the jagged shadows are only for the cars. Environmental shadows still seem crisp (likely due to the fact they're static?). Also, the trees whilst ugly, actually look OK when driving past them at 100 MPH, so I think I can kinda understand why they didn't bother with 3D trees. The city tracks are what have really impressed me with their sheer detail, and the lighting has seen a significant improvement over Prologue.

Comparing the environments with Forza 3 I think part of the differences people notice actually come down to the different dev mentality of East vs West. In Forza (West) they used various shader effects, normal and bump mapping in the environment, whereas GT (East) uses detailed artistry which can clearly be seen in the city tracks with the detailed buildings but less so on some simpler circuits.