The problem with (air quotes) "catching up with the competition" is that none of the (air quotes again) "competition" has the scope of a TES game. And that scope does in fact influence the upper limits of visuals given a set of hardware.
So we can hope for the best, but never expect THE best. But cheer up - new hardware cycle - new possibilities.
Sure the other developers don't make games as large as TES,that's a given. But even a TES can be made to look visually amazing. Seeing how the engine handles the loading of the world,it could manage better visuals. The thing is that while there is no loading screens when you walk around Skyrim,it isn't the whole world loaded when you are there,just the closest grids that surround the player. In the distance you only see blurry terrain without much detail because creatures,npcs,trees,shadows and statics aren't loaded there yet. Overall Skyrim's landscape is far larger than a Crysis 1 map. But the mass of the world that is loaded by default each single moment in Skyrim is less than what it is on Crysis. What does this example means ? That while Skyrim's world is bigger than the worlds in which you can walk in most games,the amount of stuff that is loaded at a certain time is less than in some other games. That means that a part of RAM is free for other uses,and that the processor doesn't have to process that much data. And that leaves some resources open for use elsewhere. Skyrim could have looked better than Crysis if Bethesda wanted so.
@LukeSkyrimmer : I hope what you say is true.
@ALTADOON GHARTOK PADHOME : That's not always the case. In fact it has been the usual in the past,at least for some certain aspects,that developers would develop their assets as best as they can,and they would then decrease the fidelity and quality,for the game to run on less powerful platforms. This has its own explanation. Take textures for example. What modern studios do is to get outside and start taking pictures with cameras of various surfaces,which are then processed and imported in to the games.
So basically the ground texture that you see in Skyrim is nothing more than a real photo of real ground,that had its resolution reduced,so it could be rendered by the weakest hardware the game would be released for. Any modern camera,even the cheapest ones at 70$ can capture 4096x4096 pictures. Acquiring high quality textures so isn't hard for a developer studio,it's just a few button presses away from getting low resolution textures. After the developer has the high quality 4096x4096 textures,all that is needed for them to be turned on a lower resolution,like Skyrim's 512x512 default is a single program like Microsoft Paint or Photoshop,where you put the picture and change its size,its just a 2-3 mouse button clicks procedure.
As with the textures,it is also usual that 3d models are also made with high polygon counts in mind and then they have their polygons reduced. Go browse a pro 3d model shop. You will find out that the detail on most models ludicrous. A single toaster might have more polygons than a whole dungeon. The thing is that 3d model shaping tools have a function that allows you to automatically reduce polygons in any 3d model if you want so. But there is no opposite equivalent,to automatically increase poly count. So its always better to make high poly models,because in case you need to cut some polys,you just have to import the model on the program and with some clicks it's ready for use. But if you have a lower poly model,you can't just import it and raise its polygon count with 2-3 clicks. It's way more harder and time consuming than this.
And of course we mustn't forget that many effects can be toggleable,and be turned off and on with just a click. But this isn't really always the case,it depends on the game's engine. Cryengine 3 is very good on that. If there is a thing better for it than the visuals it can produce,it's that it has modular effects that can automatically make a game's world look better,just by turning them off or on with a few clicks. But of course not every engine is Cryengine.