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While im all for options why not because when i have issues on pc games with optimization sometimes lowering the settings can help until its issues are addressed by devs.
On same note i also agree it shouldnt be needed because the problem is not hardware its poor optimization on behalf of developers because if other devs could get other mmos like FFXIV to run well on a much older ps3 which hardware wise isnt close to a ps4 or xbox one there is no reason they can't do much better and same with TESO on hardware that is far surperior and pretty much a standardized version and combination of gaming labtop and desktop hardware that while can't beat desktop PCs at its highest and best atm can surely compete and even beat it at its low and mid range and while being more affordable and easier to use, run, and maintain.
Keep in mind i was only talking about a standard xbox one and ps4 that isnt even bringing in ps4 pro and near future xbox scorpio into picture which should and can easily handle TESO.
Console games are optimised to run on a specific hardware setup. Console hardware can't run any any game without optimisation (it's that underpowered). The developers would need to optimise the game for every combination of graphics settings, which is obviously impossible.
They could create a "preset" combination of graphics that players can choose from. But in the amount of time it would take them to optimise that, they could release another chapter.