Remember this from E3? - http://www.youtube.com/watch?v=cvtn-01R-6M&feature=related
Yeah baby, thats supposedly what cryengine 3 can do. Of course that is probably pre-rendered as it is a demo, but hey, the tech appears to be real!
I dunno about u guys, but I can tell that video, if it was a person playing it, was played on a console, or at least using a controller. You can tell by looking at how slow they are turning the camera.
And it does seem to look much better. Wonder why that's not how it looks in the released version? hummmm...