The game is upscaling from 720p!
This is the 4th Unreal 5 game to come out and so far, it's looking to be very taxing on consoles.
Reason: Lumen + Nanite tech. Lumen is pretty much ray tracing of UE5 and Nanite greatly improves geometry of texture work.
3 of the 4 games use this tech and they all suffer from low resolution on consoles.
Fortnite - averages 1080p/60, drops as low as 864p
Immortals of Aveum - 720p/60
Remnant 2 - 720p/60
The one that does not is Layers of Fear and no surprise it hits 4k. Very linear game too (walking simulator).
guess we will find out how Lords of the Fallen will do, but it's confirmed to be using all of UE5's bells & whistles so don't expect higher than 1080p. Not much to do with optimization here, it's the latest & greatest tech that consoles are struggling with. Just look at Fortnite's before and after comparison. We are back to fuzzy 720p images of 360/PS3 era for any Unreal 5 game.