Very nice scene, I actually like the specularity on the walls. It makes it look like cold walls. On the carpet is too much though... Wood can be shiny like that, but I would tone that down a bit too. Still, I like the scene a lot.
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I find it ridiculous, that this level of graphics has been achieved years ago - without the need of any Shaders.
Yup, I agree. Off course back then shadows and the specularity stuff tended to be static and not dynamic, but basically it just takes a good artist to make something look nice.
Cheers