In terms of improvements ND need to make, they may well need to rewrite some underlying mechanics on various algorithms as they have a different style CPU to Cell, but these should be transparent to the engine as a whole. Art pipelines remain the same, just with potentially more opportunities with shaders. Modern features like tessellation should be able to be slotted in. If not, if the art pipeline doesn't allow for it, then they'll need to start rethinking the base engine, but I guess they choice shows this isn't the case.
The main reason for any rewrite in coding is if your source material is poop (either poop because it's old and built on the remains of remains of old, old code, or because it just can't be adapted to new technology) and it's better and more efficient to start again from scratch. ND have the luxury of maintaining a top-tier in-house engine team who can focus on the backend technology with absolute attention and design an engine perfect for their needs. The only obvious need for a rewrite would be if they changed game style.
In contrast, something like the LBP engine may well need a rewrite as it was created by a small team for a specific game to a short deadline. It probably wasn't engineered with a future in mind so much as the current project, and solutions were probably shoe-horned in as the code spaghettied.
That's a lot of presuming by me, but I just want to convey the gist of what it means to develop an engine for a game. Something like CryEngine needed a rewrite because the source was designed around insane PC builds. CryTek's experience on console will hopefully have opened their eyes to alternative ways of doing things with efficiency in mind, and they can take that knowhow and apply it to a new engine built around different principles. You only change an engine if you have to.
The main reason for any rewrite in coding is if your source material is poop (either poop because it's old and built on the remains of remains of old, old code, or because it just can't be adapted to new technology) and it's better and more efficient to start again from scratch. ND have the luxury of maintaining a top-tier in-house engine team who can focus on the backend technology with absolute attention and design an engine perfect for their needs. The only obvious need for a rewrite would be if they changed game style.
In contrast, something like the LBP engine may well need a rewrite as it was created by a small team for a specific game to a short deadline. It probably wasn't engineered with a future in mind so much as the current project, and solutions were probably shoe-horned in as the code spaghettied.
That's a lot of presuming by me, but I just want to convey the gist of what it means to develop an engine for a game. Something like CryEngine needed a rewrite because the source was designed around insane PC builds. CryTek's experience on console will hopefully have opened their eyes to alternative ways of doing things with efficiency in mind, and they can take that knowhow and apply it to a new engine built around different principles. You only change an engine if you have to.