Maybe his plan is to be banned by every mod on here.

Well he says about putting extra objects into memory would make it fall over, so its nothing to do with maxing out the cpu performance, just the amount of objects cached at any one time.

The only way they will be able to insert more instances of objects into memory will be to simplfy the objects and/or lower the overall load of any other processes sitting in memory. There are a whole raft of possible tweaks they could do, quite alot of them would probably not effect the look of the game.

their is no way they maxed out the 360 with their game, it looks worse than gears1 i think. if epic thinks the 360 has more room left in it, then thq doesnt know the 360 well enough.

Looking at the OP ...

This isn't much of a problem with the XBox 360 having "Peaked too early" as much as it is the reality of videogame consoles at this point in a generation. Videogame consoles are never the most powerful hardware on the market, but are very powerful when compared to the hardware most PC gamers have when the console first lauches; and this results in very impressive games being produced for the system in its launch year and the year following. After a console has been on the market for a full 2 or 3 years, experienced developers who are working on their second project for the system will be getting just about as much out of the system as is possible. After you have hit this peak, most of the performance gains from the system are actually trade-offs of some form.

Now, after a console has been on the market for 2 or 3 years developers who are heavily focused on the latest and greatest technology start looking towards what is possible on the PC (and what will be possible on next generation consoles).

In the past, systems like the Playstation had (what seemed like) massive improvements in hardware utilization later in their life but this had very little to do with an ability to get more performance out of hardware. A lot of this boost came from the fact that 3D was very new to most developers, and as better optimization techniques and algorithms were being developed by people like John Carmack they were being shared with the industry through new events like the Game Developers Conference.

People who expect drastic improvements from what the PS3 and XBox 360 are producing are mostly delusional.

That pretty much says that they have maxed out the memory of Xbox 360, not the CPU, not the GPU.

The weird part is that Xbox 360 has 512 MB to be used as developers fit between GPU and the rest of system. If they want to put something in, they can always put something else out.

And then we have the point of compression that is a big point and far beyond me to cover.

Maybe some of the coding takes more power then it needs?

How about the engien? Won't there be better engiens that can do the same stuff, but with less penalty on the hardware, later on?

I think it does have to do with getting more performance out of the hardware since this has been an ongoing trend since long before the original Playstation.  As developers optimize their code, delve deeper into the hardware, and learn new tricks their games continually get better looking or at the very least more technically impressive.  Anyone that thinks we're going to see the best looking games on the 360 and PS3 years before the end of their lifecycles need to take a look at past consoles and computers.

If you look at the best looking games produced in 2003 for the PS2, and produced in 2004 for the XBox and Gamecube, I think you'd have a difficult time arguing that those games were not close to what was possible on those systems.

How the hell, looking at that video, has this game maxed out the 360? Apart from the flame effects, it has nothing of note to its name...

What's going on behind the scenes in the game probably is very demanding.