Well from what I know from talking to a visual effects artist and a few peeps at beyound 3d my understanding is the lack of API. Basically an API such as Direct X allows certain features to be accessed easily both from the devs point of view as well as the console/pc's processing those features. The pros are obviously shorter dev times and easier refinement of bugs while the cons are a lack of originality/varity in such said effects like bump mapping ect.
So in other words if a game reliant on an API allows for say only small tidal wave's in real time a game without an API will allow for small medium and large tidal wave's albeit it'll take longer to dev due to addressing the larger variety of features! This in part is why so many different games in Sony's library have been "shining jewels" when compared to the majority of Xbox or PC titles. Many of these Sony exclusive devs don't use 3rd party engines like Epic games UE used in many Xbox titles (such as Splinter Cell, Mass Effect) which allows them to more accurately express their visual stylings.
From what I know the GS on PS2 used a pseudo combination of Open GL API and some direct address values to the rasterer, Over time devs naturally learn newer ways to compress textures maps and fix loops, ect that may have caused a prrevious installment in a game to have less "stuff" going on, on screen then its sequel so thats how GOW2 did it.
Not to turn into a systems war or anything but this in part is why the PS3 is slated to be the best visually over the coming years in that sequels of franchises have the opportunity to visually excell leaps and bounds over previous installment when compared to 360/PC titles who are restricted by DX API's!
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