I know this scene has been shown before but this video really shows how great the forest scene looks.
http://gamevideos.1up.com/video/id/25940 (I recommend you download the HD version - it's a huge file, 518MB, but looks incredible)
Look at the ground foliage and the water! This feels almost photo-realistic to me. I so would have wanted Oblivion with these graphics.
Keep in mind it's a big outdoors scene too, which obviously is a lot more demanding to render than indoor scenes, and still it runs fluidly on PS3 hardware, but according to Crytek the X360 version will run roughly as well, which we've seen in video comparisons also. So to look this beautiful on hardware that's practically four years old, the X360 was released in Nov 2005, is a fantastic accomplishment by Crytek.
Maybe id's Tech 5 (Rage) can come close to this, but I doubt it. For now I crown CryEngine 3 as the king of graphics engines. I can't wait to see the first complete game released on it.
