Unlike PCs, which are custom-built, consoles have a fixed specification. While PC users can be told to upgrade part(s), a console is fixed in that matter and thus always the weakest in the link. Also, I do not think the engine need to be "substantially redesigned" at all. GW2's engine, despite being crap because it is from 2005 and utilizing only 2 cores, brought up very nice graphics. Many deemed "old" graphic engines could pull off great shaders and particle effects. One of the best examples is the great GTAV PC port, which uses the same RAGE engine the consoles used.
We PC players are just so being held back by poor hardware (consoles) that we forgot how well-performing engines can be. Either it's a crappy port which is similar to a bad emulation or bad target hardware to begin with. Tomb Raider I - III were designed on the PlayStation and suddenly, when IV (The Last Revelation) came out, the PlayStation was a port and Windows the native platform. Boy, the game took a big leap despite using the same engine!



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