Anything can be scaled down, of course, with sufficient time. With sufficient time you can make a whole new game from scratch with the same features. What makes a game cross-gen, which you very authoritatively said this game was, is having a release-quality version of the game running on last gen (or of course the ability to quickly make one.) The most impressive cross gen game we’ve seen (horizon, imo) looks amazing, often better than final fantasy , but it’s built on a core of scalable tech — the visibility buffer foliage being a standout — and it runs effortlessly on ps5.
All of the things I called out are difficult to imagine scaling down without re-creating them from scratch. The lighting and modeling is very dependent on the sharp shadows, the whole game would look very flat with last gen-res shadow maps, so the lighting would have to be re-tuned, there are tons of volumetrics and even more particles with alpha , environments and characters use tons of geometry, and frequently are made up of fundamentally already fairly low poly bits — if you look closely at the brick walls in the demo you can see some pretty low res details — which means there’s not a ton of room to reduce them further automatically without surfaces turning into blobby messes. I would expect the performance mode at least to do a little better if they had scaled down content and settings in their back pockets.
Fundamentally I do not think this is a cross gen game. I of course could be wrong about some or all of these details — but it’s far from a open and shut “this is obviously crossgen” game like you presented.
Back on topic for the actual game: I’m firmly in the “these probably aren’t raytaced shadows” camp, they’re just way too stable and I’ve seen some camera transitions that show shadow map-looking artifacts. Really hope they reveal something about the approach, it looks amazing in almost every shot.