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do you think nextgen games might look like this?

Some parts of that video already look similar to some game this gen. From Ninja Gaiden to Ico to RE4, I think we're getting closer to that now. Who knows...maybe we'll see stuff right off the bat that makes that look bad.
 
We still haven't even got last gen CG in realtime yet, so I doubt we'll be getting high end CG from this gen in real time. The character modeling might be possible, but not everything.
 

FightyF

Banned
I think it has less to do with hardware, and everything to do with the tools used for making games.

I can imagine a tech demo that looks like that trailer. If you have 50 artists and a few programmers devoting their time to make something look like that, the only thing that's going to hurt their end product is time. Not the hardware.

The question is can the artists/programmers make an actual game (with physics/AI) that looks like that. Well, again, we aren't questioning hardware, but the people making the software. If software tools can speed up the process, I'd say yes.

As you say, it looks like it will happen at near the end of the consoles life. It's all about the approach and technique of developing software, rather than the hardware itself.
 
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