I have to say, R3 is looking seriously outdated compared to what most other devs are pumping out of the PS3. They should simply rewrite a new engine after this and maybe hire some new technical lead to stay competitive. Man this is one game that would benefit greatly from KZ3's engine.
I think this is their new engine.
It seems that they are focusing on something else rather than graphics fidelity.
Just a thought...
Do you think the main team moved on to work on the multiplat project? It just seems like a HUGE downgrade in graphics and features. I have been complaining about this for the past few months and as a fan I am very disappointed in Insomiac right now. When I first seen R3 it looked blurry but I thought it was just compression. To be honest I was ok with the graphics from R2 and LOVED the 8p co-op idea. R2 biggest problem was the boss fights they were horrible.
I have no idea. But from their interviews, it seems that they are comparing R3 to R1 and R2. I suspect their goal was to look better than both, and play like a champ. They also believe that graphics should only be done on RSX as much as possible, and leave Cell for CPU tasks.