So are consoles holding back this game?

[Colorful]

Not entirely, it's also due to the lowest common denominator PC specification that allows even older laptops to run the game. SE smartly set the bar low on performance to widen the audience, that is not entirely the fault of the PS3.

Took a look at the minimum specs and you're right, both listed GPUs are under 1GB of VRAM (and FFXIV seems to use more even on standard laptop settings, at 1920x1080 anyhow). Though with at least 1GB of VRAM they should be able to push armour textures further, rather than the PS3's shared half a gig memory. Regardless of how ugly the armour might be, even WoW manages a respectable armour texture resolution with the newer sets even on subpar systems.