With the work speed of some developers it would be next next gen when their games would be released with these kinda graphics..

Looks impressive but I'm sure some of the features have already been implemented on PC engines like Crysis 2 (Cryengine3 + DX11 pack). Be interesting to see how these features will work together and in an action packed game environment.

How much more work will be required to create models and textures for graphics at this quality level?

How well does the engine scale? Will you be able to make a game that runs on a current generation console, next generation console, and high end PC that takes advantage of the processing power of each system while reusing the models and textures for each version?

Essentially, if developers are going to spend 2 to 4 times as much developing games they will need to recover the money through increased sales and probably increased game prices. If you could sell the game for the PS3, XBox 360, Wii U, PS4, 'XBox 720', PC and Mac digitally for $60 or $70 at retail most developers might be able to cover double their current development costs.

i believe that's one of the strenghts of unreal engine 4, that it is widely scalable and that it is reducing the worktime a lot.

They also talk about scaling the detail of the voxel bassed lighting, and the level of detail in the demo is kinda insane in spots. Any game using the engine on consoles will be scaled down to what they can handle, I am sure it will look amazing even with some things turned down. They said that they only need arround 1TFlop for all features (tho not with the quality turned up to 11) that is a Radeon HD 7770 GHz Edition or GeForce GTX 560 Ti level of performance. Also I suspect that many games next gen will be 720p 30fps so they can have more effects and better assets just like many devs went for sub 720p this generation. 

Shhh, don't say that loud or many people here will start to kill themselves.

The first screen is beyond fantastic.

Now crossing my fingers for a powerful GPU in PS4 and Nextbox so we have a chance at getting those graphics in next gen.

Well tell that to the people who claim that 720p is enough and that they can't tell the difference bettween 720p with great AA and 1080p, and that they can't tell the difference between 30 and 60fps. And also the people who say that they are not impressed with the "next gen" stuff that is being shown. Because unless next gen is astronomically powerful Devs will take that message to mean they have to throw millions into making each pixel as amazing looking as possible so their trailers wow people, at the expence of image quality and framerate which many people claim to be unimpressed by.

Why make something that looks like a current maxed out PC game at 1080p 60fps when the many claim not to be able to tell the difference? Much better to throw Avatar at 720p 30fps with dips, at people.

I was thinking about the delusional ones who think that next-gen consoles will offer 1080p@60fps with almost Avatar like graphics. For those, the idea of 720p@30fps for next-gen games must be like a nightmare.

But then, those are the ones that believe of consoles with GTX680s and who don't take into consideration things like price or heat.

Well it looks damn sexy, as expected. I can't wait to play a game that looks that good.