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The first few images on google search for "lens flare" show those exact hexagonal shapes in the light. Does "lens flare" match the fantasy world of Ashes? That question has a subjective answer. To me it falls under the "stylistic choice".
I also prefer that they have a much more dull lighting rather than fucking "burn your eyes out at each spell" kind of lighting. This to me looks way better than an alternative of "the whole room is now blue"
As for the Cyclops showcase, I think Mag is right, they currently have a problem with how snow interacts with spell effects. Instead of being super reflective to light, it just doesn't really change that much, which comes off as unrealistic because we're used to snow being hella bright.
But, Intrepid, take this as a piece of feedback from me - I prefer it this way. I don't want to decrease my screen's brightness every time I enter a snow biome (AND I PLAN TO FUCKING LIVE IN ONE), so I'd rather lose some realism than burn my eyes out for 10h every day.
Also, I would assume that lumen would be responsible for that kind of thing and I'd imagine that Intrepid haven't fully optimized its work yet, so they decided to not fully utilize it for this particular showcase (it having 16 people and all). And this comes back to what Mag was saying. "Fix the lighting" is not as easy as just pressing a button or checking a setting in UE. It impacts way more stuff in the overall developmental process. And when the question is "do we show 10fps pretty gameplay or a 50fps a bit less pretty gameplay", I'd imagine, for a proper studio the answer is always the latter, because to gamers it comes off as a much better representation of what the game can do.
Though I guess I'm completely wrong on that, considering how fucking many people fall in love with a completely fake cgi teaser instead of waiting for proper gameplay.