They could create graphics that take 50 hours to render each frame of they wanted to. In many ways it’s more difficult to do the opposite, having a game that runs well on a wide range of hardware.
Generally speaking, targeting future hardware isn’t too tricky as the progress of hardware is relatively predictable, at least in terms of trends. Offline renderers – the sort they use to make animated films and such – are fully of features and settings that aren’t even close to being possible in real time yet.
What makes it into games – even things like Raytracing – tend to be hacked about versions of what’s in offline renderers, designed to run in real time. The better the hardware, the closer to the “real thing” they’re able to get, but real-time hardware is so far away from being able to render these things in real time that it’s not like they’re running out of stuff to do.
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