Cryengine 3 will be a graphical downgrade from Cry2 simply because it is being developed for consoles. Killzone 2, a game developed only for ps3 (supposedly the most powerful console) optomized for that exact hardware and praised all over game review sites for being a marvelous technological acheivement in game graphics, dosent hold and candle to cryengine 2.
We might get similar graphics to crysis on pc, with much better performance, which would be cool. But crysis blows console games away so brutally in the graphical department that they really wont be able to improve on cry2 untill the next generation of consoles, or theyll make cry3 really scalable so it can be tuned down alot for the console versions.
This news saddens me, so heres a big thanks to the (many im sure) pirates even among this forum community that give pc gamers bad names in the eyes of developers. Its one thing to steal food or clothes you cannot afford, but to steal a game is pure greed, and if youve got a pc to run crysis youve got the money to buy the game.
Pirating games wont kill pc gaming, but its sure stiffling its growth, and filling the market with crappy console ports. Not to mention the smaller developers who have more problems keeping their games secure, make great titles, that people just pirate. Its really corrupt.