Earlier quoted context omitted.
The graphics look good because of two things: Quixel and global illumination. Quixel is Swedish company that Epic acquired in 2019. Quixel does high-resolution scans of actual physical objects(photogrammetry) and makes them available as textures in Unreal Engine. The sheer rock faces that you see in the demo are Quixel megascans of actual rocks. The other thing that makes the graphics look impressive is global illumi…
What makes this stuff possible now though? New global illumination algorithms? Better scanning techniques? Or mostly better hardware? I don't know how it compares to other games to be honest. If it's a big jump though, I'd be interested to know what's being done different and why it's being done now.
https://www.youtube.com/watch?v=9fC20NWhx4s
The assets used in the UE5 demo are available in Quixel's website.
https://quixel.com/megascans/collections?category=environmen...
The 8K cinematic assets that Epic used in the demo are between 1 and 2MB in size. So I suspect it's more to do with PS5's SSD which has a bandwidth of more than 5GB/s and 16GB of GDDR6 RAM, which allows more textures to be streamed from the hard drive and held in the RAM.
PS5's GPU supports raytracing, which Epic said they didn't use in the demo. So the dynamic lighting must be something new they've developed for UE5.