Yeah, but now its engine looks a bit old. If you take notice it looks like an upgraded version PS2 games graphics engine. Even the NPC look A LOT like the ones of FFX and XII with better textures and a bit more polygons. They use a lot of tricks in order to get the game look good, like having 2 character models; 1 for the in-game cutscenes and the other for while you are "exploring" (that sometimes is used in conversations). Also if you look carefully the arms of Vanille, Lighting and Fang are "tubes with 6 angles"; but due to the camera angles and shadow effects it is hard to see. Also The ground textures lack some details, as you walk towards (or change the camera angle) the textures of the ground transform from blurry to sharp ones (but that is almost unnoticeable). And as some people have mentioned the fingers look awful lol XD. Sometimes they use a BIG PRE-RENDERED BACKGROUND PICs (like PS1 games!!) when you are battling (ex: the adamantoise in eden).

In general the game looks great, but is beginning to show some age.

Uncharted 2-3, GOW 3, GeOW3, Batman:AC look waay better if you ask me (but nobody is asking XD lol).

Pretty much this.  From a tech perspective, it's just an enhanced version of Final Fantasy X engine.  With that said the game could look a lot better, texture work is very flat, especially on Pulse.  Character models are great, but enemy models arn't that impressive.  Lighting is fantastic though.  And the game has great art.  Though I think this is more of a debate of art vs technology really.