Mattias Worch, technical art director for Factor 5's upcoming PS3-exclusive Lair, recently spoke to GDC attendees about creating textures and normal maps in a next-gen environment. The very technically-oriented lecture can be effectively summarized as such: "Lair looked really crappy until we used normal maps. Now it looks really good. You should all use normal maps."
Developers were told how to use Photoshop to accentuate and restore detail from textures. Also, artists need to have a clear vision before making a single texture: "Unless you know what you want to do with a normal map beforehand, it'll look wrong."