Square-Enix have been demonstrating their new graphics engine, called 'Luminous' at a press conference in Japan. The video above, brought to us by Develop shows off some impressive technology, virtually indistinguishable from the real location. Shame they chose such a boring place.

Check inside for more details on the technology and side by side comparisons of real life locations and in-engine footage.

The engine is designed to support DirectX 11, and Edge say it 'includes cloth and fluid simulation, realtime reflections and highly efficient tessellation techniques that lower the level of detail of 3D models with minimal memory usage cost.' In addition to support for procedural animation and advanced AI.

The most startling fact is that the efficient nature of the engine means that despite its impressive graphics, Square-Enix believe it will actually lower development costs significantly and scale fully from casual to AAA game. Although the Luminous Engine is being developed in Japan, Gamasutra say Square-Enix have been sharing the technology with its western owned studios, such as IO and Crystal Dynamics.

Could we see a sequel to Deus Ex: Human Revolution running on this technology? Yes please, Squeenix.