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SpokenTruth said:

Draw distance.   Neither of your comparative games have anything like the draw distance of the Xenoblade games.   And it is this draw distance that dictates the asset density of terrain.  Not even the PS4 could render Xenoblade's draw distance with Infamous: Second Son's asset density.

You are correct about texture resolution in general.  But the further you draw, the more sparse your terrain has to become to comepnsate or else you'll have pop in or fog or other LOD tricks.

Look at AC games.  At some point, actual rendering stops and then blurry backdrops are added because the asset density isn't possible at full draw distance.

That was kind of the whole point of the post, game scale =/= storage size. Small dense environment with a high number of unique assets will take up more storage then a large sparse environment.