Yeah... You're only really going to appreciate the quality in cut-scenes, and those can be largely done with offline-rendered videos and the ultra high poly models where they can also jack up the lighting and shadowing and other cinematography effects up the wazoo. Of course, that means you don't see customized characters (if the game even has such a feature), but there's got to be a conscious trade-off somewhere.
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Gears in-game models certainly do have their sharp edges, but I can't say it was awful whilst playing. That's the sort of stuff I only notice in screenshots and also because of the angles being used.
Sure, maybe you can do crazy high quality in real-time ala Samaritan, but I gather that the point of that little section was showing that the technology exists to do such morphology in the first place (DX11) - what gamers will even be able to do it in real-time?
There is stuff like Flood/Halo 3 and Lambent/Gears 3 morphing, but that's maybe more an issue in the flexibility of authoring the assets. At least I took the DX11 stuff just to make such things easier to do with fewer restrictions. They can pick a suitable tessellation factor for performance. Not sure how tessellation factors into facial animation...
There's going to be a whole lot more other things that need attention i.e. the environment, and ultimately there is a bit of a ceiling limit for the base triangle throughput (sans tessellation factors). Setup rate and core clock speed haven't seen gigantic leaps in the last 5 years - nothing comparable to ALUs.
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Anyways, there's such a wide variety in games where the quality of models is dictated by priorities and game performance. If you're just talking about capabilities, well, Fight Night 4 already showcases really impressive modeling on current gen due to the nature of the game, but who knows how much work went into it despite having real-world people to base the models on.
Is that economical for a full on action game with larger and more detailed environments? How much work was it to make the 60K in-game models for Resident Evil 5?
Too many considerations.