Naughty Dog have come out and said that they aren't aiming for a massive graphical leap, they plan to use any extra time and resources to make the environments and animations much better, like what they've shown with the oxygen and fire effects. I'm sure it'll look better, but it's not going to have the same visual impact that the first and second one did when they released.
Bet with Conegamer and AussieGecko that the PS3 will have more exclusives in 2011 than the Wii or 360... or something.







