Looks great, but I can already notice there's not reflections on the wet sidewalk. ( easily seen at 1:58)

http://www.gamesindustry.biz/articles/digitalfoundry-in-theory-mapping-the-next-gen-xbox?page=1

That is a pretty good article looking into the possible performance range of the next Xbox. Those expecting minimal graphical boosts may end up being disappointed considering this seems like an expected minimum or more conservative prediction. Ofcourse they could follow the Wii's examply and go for a small power upgrade and focus on interaction instead, however personally I am thinking that Lionheads "Mega Mesh" technology will be in practical use at the very least.

I expect:

- We will be seeing much more in the way of characer/environment model details (Parallax Mapping/Tesselation enhancements etc...)

- Volumetric items (Smoke/Water etc...)

- Greatly increased texture resolution/detail

- Big improvements in real-time lighting techniques

(taken from my post in this thread http://gamrconnect.vgchartz.com/thread.php?id=127318&page=1 )

This is very fanciful but I would hope to see the first instances of Ray-Tracing used particularly on smaller games/game areas e.g. Twin-Stick shooters, XBLA/PSN games etc...

Games will run at 1080p 60fps in the beginning, just as a few did this gen. But they'll drop down to 30 and maybe even 720p again to push more effects.

What I hope is that there is enough memory to do deformation, flowing and pooling water, smoke pouring through the environment blown by air currents, and realistic interaction of different materials. Pixeljunk shooter in 3D, descent style, could be pretty amazing.

You are right in a way, games that come for PS4 in 2016 might look better than BF3 and Crysis 2. But games you will see in 2013-2014 will not. And PC games in 2015 will be above anything PS4 will ever do, just like Crysis 1 still looks better than every console game and that came in 2007.

Of course graphics will improve. A lot.
The big question is if the majority of people will even notice that.

i predict the ps4 will be alittle bit more powerful then the ps3.. but not by much.. if they decide to create a monster again then i aint looking forward to E3 and hear "$599USD" , it will be like dejavu 

I will just let Carmack explain

Just to complement your video, here is what he said about the next consoles (for those who like me can't fully undestand english)

http://www.eurogamer.net/articles/2011-06-16-next-xbox-ps4-will-be-10x-as-powerful

I don't know if they will be that powerful (10x), but they will be a lot more powerful. Microsoft will launch the most powerful console they can knowing that Sony will launch their next system some time after them and Sony will try to use that extra time to launch a console thats better than their opponents.

It's their nature.

Some people think that the PS3/Xbox720 will have significant better visuals than PS360, but that is not true. Yes the step from PS2 to PS3, from SD to HD graphics was a big one. The Wii U will likely takes the next little step from 720p visuals like almost all PS360 has (most times even Sub 720p) to true 1080p visuals.

PS4/Xbox720 will likely have the graphics power of actual PC, and many people already don't recognize the difference between PS360 graphics and a modern PC.

Perhaps in five to six years, with new graphics card technology (a la real raytracing in hardware) there will be another significant step in visual quality, but this will not happen in this or the next console generation.

I think John Carmack is saying something similar to what I was saying but our expectations of what this means may be different ...

Graphics processing power can be used to create more detailed graphical assets (models, textures, etc.), to increase the quality of the lighting and effects, or to improve the quality of the output image (increased resolution, AA, AF). To a certain extent you can improve all of these in isolation, but eventually you will hit a point where you need to improve the others to see any real benefit; as an example, if you were using an output resolution of 320x240 it would be difficult to see the difference between a game like Resident Evil 4 on the Wii/Gamecube and Resident Evil 5 on the HD consoles because the capabilities of these systems both exceed what can (really) be displayed at such a low resolution.

Now, if you had 10+ times the processing power of the HD consoles you can focus on "maxing out" the detail that can be displayed at 720p @30fps and the quality of lighting/effects that can be produced using the raster scan line algorithm, or it could be used to render at 1080p @ 60fps with more minor improvements to detal. The lower resolution approach would probably result in a system that seemed to be more of a jump forward in graphics, but the higher resolution approach would likely keep development costs lower.

If you could get to a level that was 40+ times the processing power of the processing power of the HD consoles you could probably increase resolution and detail at the same time but, being that would probably require graphical hardware that is the equilivalent of 2 of the top of the line graphics cards that will be released in 2012, and that means the system would either be released much later or be very expensive.