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Soleron said:

@Barozi

I don't think people buy games for draw distance.

The other major tech change with a real effect on games that forced the PS2 to retire was online multiplayer as a social experience.

I don't know that core games need local multiplayer any more. Mario Kart and Wii Sports do, but would people have friends round to play split screen CoD or Halo? That said it IS the kind of possible/not possible thing I'm looking for with next gen. What else do devs mean when they say they can't wait for next gen?

Halo CE was huge as local MP game, I'm sure many people to this day like to play 4p local splitscreen. With system link you can play with 16 players and only need 4 consoles and 4 games.
LAN parties are still a big event for PC gamers, so why shouldn't it be for console gamers ? I for one always liked and still like local MP.

I've also edited my last post and added that more CPU intense games like Total War and Starcraft 2 would theoretically be possible. Also games with lots of simulations such as manager games.

Adding to the AI part. Imagine that every pedestrian in GTA has it's own AI and they would not respawn. You could track every single person in the game and watch them drive, park their car and walk on the pavement. And if you kill them, they're dead - forever. You could kill all cops, thus giving you an easier time to do your crimes. You can kill certain gang members and they would be forever gone from their home districts. Some of the people who watched you committing crimes may run away or attack you the next time they see you.

 

Skyrim already does some parts of this, but only merchants and quest givers have detailed daily routines and they usually "forget" what crimes you committed after a few days.