"Way too many limitations.
Keeping it cool.
Keeping cost effective."
Keeping it cool? Not a problem.
Keeping cost effective? Not a problem at all.
Example: Look at the NGP, Quad core processor (the latest one), just for the reference. Apple for the iPad 2 use the same ARM processor that is in Playstation Vita, but dual core.
and the price of Vita? 249.99$ and it's processor is the best on the market for handhelds and mobile phones
"I expect an xboxone to xb360 level jump. At most."
you saw Unreal engine 3.5 demo?
It's just a 3.5. It's not even Unreal Engine 4.0.
3.5 version of this what you saw can be used for GTX 580 videocards and it's not even CRYENGINE 4 or iD Tech 6.
This demo is not possible on current gen consoles.
iD Tech 6 will use voxels for example. You know what that means? That means that the difference between visual fidelity will be like from PS1 to PS3. I'm being honest. It's a fact.
All games built in polygons which have a lot of restrictions, voxels is the next big thing.
the difference between them is day and night. Thats a fact and you can push any art style with it. Realistic, or cartoonish. Does not matter.