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Can someone explain to me - - exactly/specifically - - what creating a new engine entails?

I guess the main thing i want to know is...does this make it IMPOSSIBLE for ND's future ps4 games to look as good as they could have if ND would've created a brand new engine?

Idk what specifically goes into creating a new engine, but the feel I get is that this could actually be pretty inefficient, and that, therefore, ND's approach this time around is the better decision.

Considering ND's graphical prowess, I feel like we have little choice other than to trust that they've insured their future games will have industry-leading graphics, and that this decision had nothing to do with laziness.