Square Enix has their eyes on the future. During E3 2012, they revealed Agni’s Philosophy, a tech demo showing how future Final Fantasy games will look like.  The graphics engine used is called Luminous Studio – Square Enix’s new engine built from the ground up. The gap between real-time graphics and cinematics get smaller and smaller through the years. With how this tech demo looks, it seems they could be eliminating the gap completely. Have a look for yourself.

Take note: This is all played in real-time. Not a rendered video or cinematic. This is also not a game currently in development. The characters, setting, and environment is all created to show the public what Square Enix games could look like in next-gen consoles. I suggest you watch the video on 1080P to really see the quality.