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The power bump would seem more significant without the needless adherence to 4k60 which requires an enormous amount of computing power. 1080p should have been the target resolution this generation with a focus on graphical effects.
games do not run at, or target 4k60
Forspoken literally runs at a dynamic 1080p60 and drops all the way down to 720p.
in RT mode it drops down to ~800p at 30fps
Dead Space is barely above 1080p in both graphics and performance mode. and the devs still rely on a dynamic resolution and at launch even had an aggressive VRS Tier 1 solution on PS5 to help with performance.
it's simply not true that games target 4k60 and therefore can't look better than last gen.
almost no game targets 4k, even at 30fps they often don't come close to 4k, if they do it's dynamic and usually below that.
Watch Dogs Legion is technically dynamic 4k in graphics mode I think, but in reality it's usually at 1440p and can drop below that (VG Tech found a low of 1180p on PS5 and 1330p on Series X in RT mode)
the games that target a full 4K are rare... Forza comes to mind, but even that now has a dynamic resolution scaler as a fallback, which was never the case previously.
Rasterized graphics are simply not getting much better. you can have denser foliage and better draw distances, but that's basically it. and adding more details to graphics that are already really detailed is absolutely giving diminishing returns at a certain point, and many last gen games already hit that point.
it would for example be nearly impossible to make The Last of Us 2 on current gen, and make it look significant better than the PS4 Pro version without relying heavily on Raytracing. even if it was completely remade from the ground up by the best artists and using the best tech, it would barely look better.
and since raytracing is something that's pretty slow on current systems, it's hard to use it to add a big upgrade, especially in the case of TLOU2, which is ridiculous static and can easily rely on extremely high quality prebaked lighting in most scenarios.
the only real difference on these new systems is that developers will be able to make more dynamic and open games look as good as static and linear games did on last gen.
and that's a less obvious jump in fidelity, as it's context dependent.