Yoshinori Ono from Capcom made it very difficult for me to transcribe what he was saying, so I'll give you the gist of it. The technology of the original PlayStation allowed them to get creative and make new IPs like Resident Evil. The PS2 technology made series like Devil May Cry possible. The PSP — you see where this is going.
What does the PlayStation 4 bring to the table for Capcom? Capcom has made a new engine for the PlayStation 4 and continues to refine it so it embodies what the PS4 stands for. The new engine is code-named Panta Rhei and will allow Capcom to take game design in new directions.
A new IP was shown running on the Panta Rhei engine, with Deep Down as the working title. The environment, lighting and particle effects are not like anything I've seen, and I couldn't tell whether what I was seeing was a cutscene or in-game footage.
Who knows how Capcom will apply this engine to its Resident Evil franchise.