Virtua Fighter 4 on Naomi 2 makes use of perspective-corrected reflections, which is actually better than the Screen-Space Reflection solution that most modern games use...
That alone was impossible to replicate on Dreamcast, but some homebrew projects like the one from Tashi managed to implement Bloom on the system! So it becomes apparent that DC still has untapped potential.
Not to mention the ability to render 256 layers of transparency (Order-Independent Transparency) -- something even the PS3 and 360 struggled with at times.
Some examples:
»The edge of Snake's hair in MGS4 once the character is in front of the sun;
»The reflection on the glass of Alan Wake's car on the ferry boat.
»Even the All Mighty Crysis in some portions of the jungle; Just check for yourself!
(Not sure if related to transparency), but on RE3 Remake certain fire effects get stretched out at the top and bottom of the screen. Could it be a problem within the engine itself?
Going to the previous generation, you can see it even more on:
The large trees in GTA: San Andreas (during the first cutscenes, as CJ is getting arrested);
RE4's grass and certain indoor objects;
Shadow of the Colossus' grass;
MGS3's foliage on certain trees (very tame, considering the density of textures per-area).
Dreamcast never suffered from such problems, 'cause no game ever made full use of this feature, a feature that stood the test of time, even to this day!
What's more baffling is the fact the VF4 wasn't ported to the Xbox, given the large Sega catalogue on (it). Perhaps to avoid "conflict" with Dead or Alive 3? Not only 3, but Ultimate and 4, being part of an exclusivity deal...
By the way, as impressive as it is, there were some cheaper techniques used, just like Resident Evil 4: The use Volumetric Rolling Trees
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