Man, I'm starting to feel like I'm in an eternal Deja vu. We have been discussing the very same thing for months now.
But let's try this again:
Goopy, you seem to be struggling to grasp the concept of scalability. You see, if they take the very same UE5 demo that impressed you so much and scale it down enough, it will run on a PS4; which means ANY game from this engine that looks as good as this demo will also be playable on the PS4 with the correct amount of downscaling. Now, will that prevent the PS5 from offering next-gen graphics? I'm inclined to say no.
And another thing: UE5 won't release until next gear, which means is safe to assume that no developer is actually using it just yet. Now, we don't know how many developers from Sony are using UE4, but we know that most developers from MS actually do use it; and we also know that (according to Epic) it will be easy to port to the newer version. So I think you should consider the possibility that you might actually see an UE5 game running on XSX before than on PS5.
