photo realistic eh? cool...now there is no more need for movie special fx companies. Just make everything and run and render it realtime right off of the PS3.
...but seriously we all can see that not even the best movie fx are 100% photo realistic. To say the PS3 can run realtime what these special fx studios render in render farms for months is rediculous. I know that they are rending much higher res images for film but please. Why can't game devs simply say games will be a great deal better then current gen and praise them in other ways.
Edit: What also irks me off is how general these statements are. What can be rendered photorealistic? Everything? So you could, say, render 1,000 bears with every single hair rendered with soft, self-shadowing walking through shallow water with perfect reflections as the water ripples realisticly with perfect physics and emited particle droplets? I seriously doubt any dev could get 1 bear in a pond animated realtime and have it look "photo realistic" (where we think it's real video) with the effects I described.