Microsoft has come out and stated that Gears of War 2, from Epic, will raise the bar in terms of what next-gen visuals should look like, challenging Sony as they move forward with big PS3 exclusives such as Killzone 2, Metal Gear Solid 4, and Resistance 2.
Microsoft stated that Gears of War 2 will feature far imrpoved visuals. In the fact sheet they released, they stated that "Gears of War set the standard for high-definition visuals and became the game to which all others are compared. Gears of War 2 raises the bar even further with the amazing technological advances of Unreal Engine 3."
They stated that the game will build on the success of the original Gears of War, which sold 4.5 million copies on the Xbox 360.