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I think for practical purposes PS4 tier visuals are good enough approximation of photorealism that any reasonably talented art staff can make a beautiful looking game.

Like FF7 Remake or Last of Us 2 would be considered basically CGI movie quality or better from 15 years ago.

With the exception of ray traced lighting, basically PS5/XBSX should be able to provide what was CG quality and really honestly even then, pre-baked lighting if done skillfully is no slouch.

That said ultimately it's about the game and if a developer says they need that much horsepower to achieve their vision, so be it.