The UE4 demo has sh*t art design, while the game caps show exceptional art design. Therein lies the problem of comparing the two. Until either PC, PS4, or Xbox Infinite release big AAA visionary blockbusters using UE4, there can be no legit 'This Gen vs Next Gen' graphics comparisons. Although seeing that demo in motion might help out these early discussions a bit.

I disagree, I'm starting to think even Crysis (Warhead) looks mediocre. I have yet to play Battlefield 3 and Crysis 2 but other than the 1080p / 60fps combination (which sometimes isn't even possible to achieve without a £1000 rig), there isn't that much of a difference, it's similar to the PS2 and Xbox difference. Battlefield 3 and Crysis 2's console counterparts look almost as good.

Those UE4 shots are stunning though, everything is crisp and vibrant and those particle effects are second to none, I don't think the differences are huge, but it's still significantly better looking and will probably look even better at E3. I would love to see a real next gen game running on this engine, or one just as good looking. I wonder how much effort it takes to produce a game with graphics like this though.

UE4 dominates anything on consoles right now by far.

The UE4 screens are MILES better than the PS3 ones..............not sure what your talking about.

The effects like heat waves, particle effects, and dynamic lighting alone are massive improvements.

UE4 ones do look better. But meh I'm more interested in seeing ND's next engine..

The funny thing is that these tech demo screenshots are likely far better than anything we will ever see in the first few waves on next gen games. If people are disappointed in these then when they see launch PS4/720 games they will cry. 

Look at the original UE3 tech demo that used gears of war tech. Honestly even towards the end of this generation a lot of games are struggling to compete with it. EDIT: For anyone wondering what I mean by the early UE3 demo here it is  http://www.youtube.com/watch?v=1m7T5ay_8DI  Unfortunately I can't find a direct feed HD version. However this tech demo was the year before the 360 came out (much like UE4). Look at some of the lighting, shadows cast in it, the detail on textures up closer (like the walls etc). So likewise with the UE4 demo I really don't think we will even see launch titles look that good. 

People often forget that there is rarely a HUGE bump between the launch titles on next gen consoles and high quality titles on last gen ones. 
Compare a late life xbox game like Black with perfect dark zero or resistance. Conkers reloaded with Kameo. The bouncer with FF9 etc etc. Yes those games look better but it isn't a HUGE difference. In fact with the PS2 to PS3 gen we were lucky as suddenly having games in HD made a big difference. Generally we only see the real big differences once we start to hit the second wave/big AAA titles after a year or so. The PS3 and 360 both getting uncharted and gears almost exactly a year after release.

UE4 looks amazing, PS3 exclusives are good, but not in the same league.

Yep..the fact they just have to optimize it for a single console helps too...unless the PS<Xbox in power or something I don't expect the outcome to be different than this gen. On consoles ND/SSM will be gfx kings. Can you imagine the next UC? I bet we will feel the wind in our faces! FACES!

UE4 looks better but not that much... I expect some thing better for the next gen.

ND uses UE3.