I'm pretty sure that this is just something some no-name website came up with to generate clicks on their pages. First of all, I don't believe that there is a game-related company called Geometrics at all, and the article doesn't even list the names of any one whom they interviewed. That to start makes it very hard to take seriously, even more difficult than other similar articles.
Further more, as has been stated so far in this thread, it would be absolutely impossible for a console to produce visuals such as that, considering it's not even possible with top-of-the-line PC hardware. The difference between a movie like Avatar and a video game is that Avatar was entirely pre-rendered. It's essentially like the entire movie is one really long cut-scene. Additionally, the movie is only running about about 24 frames per second. A video game, on the other hand has to be actively rendered in real-time as the player is playing it. This many, many times more computing power than what can be essentially boiled down to playing a video file. Because of this, visuals in games will still take many more years before they can commonly be compared to the visuals found in movies such as Avatar.
Just to finish this off, there have been numerous quotes by other, legitimate game companies and people with names about next generation hardware, and they've all concluded that it can't do anything that a solid gaming PC now can't do. This makes sense of course, because the idea behind consoles is that they are a simple and cost effective way of playing video games. If they threw in hardware that one might find in a $1500+ hobbyist PC, then the console wouldn't be so simple or cost effective any more. So yeah, not only should you take this rumor with a grain of salt, but you should also completely discredit it, because there is no way that is possible.
