There isn’t really much in terms of graphics that don’t work at all on less powerful graphics cards, so a studio can start working on a game that runs slow on max graphics settings with the expectation that newer graphics cards (or a new console generation) will be able to handle it.
And at the end of development if performance is still too slow they can adjust things like reducing the texture sizes, amount of special effects, how far away models get swapped with low detail versions etc. until it runs ok.
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