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There's no reason why you can't have simulation grade physics in any console game, even one that is supposed to appeal to people from 7 to 77. With SRF, Stability Control, TC, ABS and more available, anyone can drive any car just like they do now.
In console games the ability to turn off driving assists has existed for decades, including in GT games, but still PC sims have always been heads and shoulders above console games in terms of physics and simulation. Therefore, your argument is out of the question.
When I talk about the target audience I'm not talking about the game physics being hindered or simplified so that they are approachable for kids. That issue is already solved by the driving assists you mentioned. Instead, what I mean is that the console games developers target an audience that demands quantity over quality, more cars over focusing on each one; which is the opposite of what simulation requires, which is attention to detail.
In other words, what's the point of having the option to remove SRF and thousands of cars to drive, if there wasn't a developer in charge of simulating the characteristics of each specific car? I can't be the only one that notices how most cars in GT6 have clearly incorrect gear ratios and how the top speeds are absurdly badly made, sometimes hundreds of kilometers per hour off, both which are the very basics.
What's the point of being able to remove stability control when 'driving' around the Nurburgring, if the track lacks half the bumps and the elevation changes are missing? In Gran Turismo that modelling budget and development focus went into having yet another Miata, while in PC sims that went into laser scanning the tracks (Assetto Corsa, iRacing, and well Forza too). Remember when Top Gear featured GT4's Laguna Seca and Clarkson said the game model even lacked a whole corner? That model is still used in GT6, and when your game even lacks a corner then it cannot be considered a simulator.
This is why GT Sport is the step that PD needed to finally make a simulator. If the announcement is true (with PD it rarely is), now they will focus on featuring way less content, way better made.
Not only that, now that PD can focus on simulation then they can use some of the limited processing power of the console (in this case the PS4) to go into having better sounds and physics, instead of everything going to the graphics. Kaz himself said the lack of RAM and overall resources was the reason why the sounds were awful in GT5 and in GT6, but the reason for that is those resources were being used to have the newest shadows. That lack of processing power hurts the physics too. If GT Sport is not only about graphics and quantity, then it's possible to have improvements in other areas. .
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