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The thing is, I'm certain that the processing limit has been hit early in the life of every system, maybe even PS3. That processing limit is the bare minimum limit and the absolute best detail that can possibly be crammed into that processing limit by a game engine is the absolute maximum limit. I think it has happened plenty of times where people say the limit is hit and then better looking/performing games come out for that system, so I think the limit as most people see it is very close to the processing limit. It's sort of defined by a balance of what people expect from the system and the performance that they see, so in most cases it has a personal definition. A game can hit the limit on all hardware and maintain good performance, but the detail can still be increased at the cost of performance, and that's where personal preference comes in play to determine the limit. Some people only want to play with 60+FPS and some people are fine playing with 20FPS.
I hope I'm making it clear enough for everyone to understand.
I think it's safe to say that I've concluded "the limit" as it's commonly used to be a variable defined by the player.
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