Demon Soul's Lighting?

Ether_Snake

Newcomer
I started playing Demon's Soul recently, great game, and I was wondering about the lighting. It looks like it might be differed rendering, considering the number of apparent dynamic light sources.

But one thing I noticed that works extremely well is a sort of halo around all light sources. You can see some banding on it, but it's definitly not a camera-oriented plane with a texture. What works so well about it is that it looks as if the light was revealing fog (like in real life, fog/dust is revealed by light). So when you have a lot of light sources close to one another, or one behind one another like in a hallway, it gives a volumetric fog-like effect as the halos overlay one another. If you go in the Nexus, the huge blue light that fills the room uses the same technique, you can see some of the banding if you look hard.

How do they achieve this? Any idea?
 
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