Well, okay, here's what I saw:
Impressive lighting and shadows, some decent reflections.
Generally impressive water with good refractions.
About, say, 40% of the texture work was very detailed and impressive, about half of it was unimpressive. The remainder was downright terrible. Crude even.
Everything was too low-poly. Good textures can hide some sharp polygonal edges, and can even make a low-poly character or object look much more detailed. But some of these things were way too low poly, which is a little disturbing. It's somewhat confusing why, at one point, the camera focused on the base of a pillar that had to be no more than a hexagon or octagon in it's overall "roundness" which was blatantly obvious. At this point (about 2:17), the texture looked flat and completely failed to hide the sharp polygonal edges, despite the fact that the lighting and shadows looked pretty good. If something is too low-poly, no amount of fancy texture will hide it.
However, as a whole, the texture detail was good and the lighting and shadow effects on the textures were good, and the demo does show some real promise. Too bad they didn't have a heavily detailed animated character walking through there to give us an idea of what kind of detail the engine can offer for them. And no, the little fish in the water doesn't count.
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