Unreal 4 better watch its back. Square Enix pulled off what may be E3's biggest surprise when they unveiled an incredible real-time demo of their new Luminous Studio engine. Using a Final Fantasy motif as a showcase, Square Enix describes the engine as being for "next generation quality games".

The next generation of consoles may not be at this year's E3, but their graphics certainly are. Everything you see in this video - dubbed Agni's Philosophy - and screens is supposedly running in "real-time". Or, to quote Square, this is a "FINAL FANTASY REALTIME TECH DEMO". Given this is an engine advertisement, don't expect launch games to look just like this, but still. A glimpse at the potential of future consoles is better than no glimpse at anything from the future from this show, right?

Square Enix has been known for eye-popping visuals in their Final Fantasy titles and this new tech makes it seem that like that legacy will keep going strong into future generations.

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Republished with permission. Luke Plunkett is a contributing editor at Kotaku.