I just think that's separate from the assumption that the Jaguar isn't a bottleneck that developers have to keep a very tight lid on. We saw what happened when Ubisoft got to ambitious with Assassins Creed Unity. They ran into a ceiling that they were never able to work out. In the scheme of things, all those NPC's running around did very little to excite the player and was subsequently toned down in future installments.
Sure Jaguar wasn't as much of an improvement over last gen's CPUs as the the GPU's were, yet that is not the sole reason NPCs vouldn't work in AC. Development time and budget were the bigger factors. Dead Rising on XBONE and that other zombie game demoed on ps4 (yet to come though) show both that it's possible to have thousands of NPCs on an open world game, and that it does excite the audience as those are the main selling points in those games.
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