Cartoony style graphics....

[Shougun]

You're funny, nothing you say makes any sense. How would I possibly know they are exaggerating on purpose when they go on to say they expect a game in 2012 to look better? That means they have looked at the image and made a comparison to games in 2012 and games throughout the last two decades to best match it with games from 1997.

Also, Yoshida has said many times that the engine isn't done, that doesn't mean that the engine is non-existant just that they have much more work to do. The engine still needs to be optimized, shaders implemented, and who knows what else they have to do. Re-purposing the core of the Luminous Studio engine isn't a small feat, they graphics are going to improve as we near release for both PC and PS3. And even then the engine is very scaleable with graphics that can improve beyond what we are seeing now, however as I said the Luminous Studio engine is still a work in progress.

I know a lot the framework is based off the luminous engine but didnt they say they have only taken parts of it?

The shaders are going to really help the clothes/armors (if they are missing, assuming they are since its noticeable).