what?  The best HD games now graphic wise are built upon Epic's Unreal 3.0 engine (3.1 for GeOW2).  What do you forsee for the next iteration?  Real time ray tracing, vast draw distances, etc.? 

PS: Interview w. head Unreal programmer Tim Sweeny can be found here: http://www.tgdaily.com/content/view/36436/118/1/1/

full ray tracing wont totally be possible, even on PC, but I could see partial ray tracing.

It will be targeted at the next gen of consoles. Most likely not much will change in the foundation but this will still be enough for an unbelievable leap in graphics (Just compare PS360 graphics with last gen the jump is awe inspiring. )

But I would dispute the statement that the best looking games are based on it. UE3 has awesome shader support and it looks like people had imagined the games of the future 10 years ago (that is very much like old CGI movies with strong highlights etc.) But it pays for the great lightning effects with reduced details, the Doom3 shine disease and view depth problems.

IMO other games like Crysis (even on comparable hardware)/Uncharted/Assassin's/MGS4 look just as good if not better, depending on what you want in graphics.

You said it very well.

I would like to see them fix the shine.  It's in Gears, it's in Bioshock, it's in UT3.

(Edit: it's not as bad as Doom 3 shine, but it is noticable.)

i dont think the unreal engine is that good and most of the games that have been built with it have a strange look to them and a lot of blur. Gears anyone

a good ps3 port, and better leaf shading, something like uncharted cry engine2

It should be capable of 4-D graphics :P. Oh and...ultra realistic fluid simulations.

The Unreal engine is, in my opinion, the best graphics engine because it runs well on a very large variety of machines and still manages to produce incredible visuals. It is optimized very well and shows.

From a graphical perspective, the Unreal 4.0 engine will probably be mostly focused on post processing than previous Unreal Engines have been. If you look at the 3D cards of today and consider what a bleeding edge gaming PC will be capable of in a couple of years, we will be hitting the limit of what is (really) noticeable from pixel shaders and people will be focusing more on improving the image after it is rasterized ...

I don't care what it does, as long as it is well optimized. Fortunately, they did manage to get the part right with UE3. Hopefully they do the same with 4.

(also, WHERE'S MAH UT3 LINUX CLIENT, EPIC???)