Kojima: "Next level of gaming" not yet possible

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They've still got a way to go in some of the basics haven't they before they can start talking about extraneous background fx.

Like non-pre-canned character animation (e.g. walking down stairways and calculating the physics of the footfalls, etc..).

Characters that can depict nuanced emotion - just starting to see that now really (Mass Effect?).

Or even lighting - realtime radiosity with colour bleed and diffuse fx rather than fixed or direct lighting only.