Do keep in mind that Mass Effect used the Unreal Engine. While its been a very versatile and all-encompassing tool, its also been notoriously difficult to optimize on the consoles, particularly with larger scale games like RPG's.
To be honest, I'd say that the Xbox360's limits have beenskimmed pretty early on. Many developers have raved about the ease of programming for it, so I dont think there was ever much potential left untapped from games made even back in late 06, early 07. I mean, if you look at the difference between early PS2 games and some of the most recent ones, there's a noticeable gap in quality. I dont think this gap is very prevalent with the Xbox360. Part of the reason would be the obvious difference in storage capacities for the respective mediums. The PS3 Blu-Ray can hold a massive amount of information, and while you can hold similar amounts over multiple DVD's on the 360, the publisher has to pay more for these multiple discs and only certain games can realistically be multiple-disc without inconvenience.
Not that this is really a bad thing, though. Everybody knows that the PS3 is on-paper the more powerful console, but so far, very few developers have taken the time and effort to actually exploit its full potential, and this is largely because the PS3 is notoriously hard to develop for, and they've paid the price for it early on. Why spend extra time and effort(which costs them $$$) to make a game for this one system whenyou can do it for this other highly popular system for much cheaper?
Anyways, yea, I dont think we'll be seeing any new games that suddenly blow previous 360 games out the water in terms of superior technical graphics or anything, but the 360 is also quite versatile. So while it may not match up to some of the best PS3 games for the discerning eye, there's not really much the PS3 can do that the 360 cant. I imagine that games like FFXIII will still look stunning on the 360 and the graphic difference to the PS3 will be comparable to high and ultra-high settings on a PC game. In other words - negligible for the majority of gamers.
But I do think FFXIII will probably be one of the first games to really 'push' what the 360 can do.
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