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What I've been hearing is that it was Guerrilla that convinced SCE to go with 8gb, much like how Epic convinced Microsoft to go with 512mb of ram in the 260 by showing them a demo of Gears of War running on 256mb of ram vs the same demo on 512mb of ram back in 2004.

I wouldn't expect too big a change in Killzone: Fallen Shadow's visuals before launch.