Developer mentality says our software runs better on higher spec hardware, potentially with a lot less optimization required depending on how comprehensive the SDK tools are and how well they facilitate the transition to the new hardware.
The latter half of that statement applies to ANY new hardware platform.
Developers will always take more memory over less. It makes their job easier and provides more flexibility by the simple merit of providing a larger pool of essential resources to draw from. This is an elementary enough statement that anyone should be able to see this.
Similarly, having more processing power both in GPU rendering capability and raw CPU processing capability removes more restrictions in addition to providing those new shader, lighting and rendering effects to make the visuals that much more believable. Use of the latter are not a requirement for next gen game development. Reduced budgets will always result in reduced visuals. This is apparent even among 7th gen hardware based games.
Lastly, as I know it's already been pointed out, take one look at PC game development to recognize the fallacy of believing the availability of better/higher spec hardware automatically equates to increased budgets for all games across the board.
That simply is not true.
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