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curl-6 said:

"In-engine" cinematic stuff isn't going to do the trick; gamers have wised up to the fact that these can be faked. The reason the UE5 demo worked so well was that it was presented as gameplay. Whatever the best looking game MS have up their sleeve at the moment, they should put together a gameplay showcase for it. Show what their new system can do and why people who care about visuals shouldn't just get a PS5 instead.

You speak as if gameplay downgrade is not a thing.

As per your point, I will be extremely surprised if ANY company shows a game this year that looks as good as that demo. Furthermore, ever since MS announced that they will be focusing on 60fps, I think it is safe to assume that Sony´s games will probably look more impressive graphically speaking. Will that affect sales on the first year? it's hard to say, but I'm inclined to think that most people who buy a console on the first year have already their mind up even before said consoles are announced.