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I am playing on 1440p with 120% image quality (sadly can't go any higher or my frames go bye bye). When I was on a 1080p monitor I could get 150% image quality and the grain became far less noticeable. It's still there, but not as distracting. You will notice in on things from time to time (especially shadows) but mostly will be immersed in the gameplay.
Only thing that really bothers me a bit on a regular basis is how aliased the hair looks, but I refuse to take a big performance hit to turn on the hair effects.
Yeah man, I went through a bit of a crisis two weeks ago when I thought my graphics card was faulty or something. Ended up doing a full Windows OS reinstall and everything. Then I started doing a little bit of research into games and learned it has a lot to do with TAA, rendering, and the way effects/shadows are under-sampled in modern games for performance reasons. Because it's not just this game.
Atomic Heart, Modern Warfare 2, and Dead Space all have similar issues to varying degrees. The only way I've found to improve it is with upscaling, but even that doesn't take it away and it's always noticeable if you look close.
Perhaps you could share a screenshot of your game? It is possible that some settings you have are making the grain even worse than it is normally.
Well it doesn't help I'm playing on a 4k 48" OLED so these things are much more noticeable. I've gotten it to look acceptable now, although it's pretty overkill.
I'm using the DLAA mod at 4K with in-game TAA+FXAA enabled. Unfortunately disabling TAA makes it worse. It's only noticeable when you are standing still. When you move the shadows look better so it seems it's something engine related. The game was clearly designed to be played with TAA.
https://steamcommunity.com/sharedfiles/filedetails/?id=2952325454
Here is an example I took earlier. As you can see looks like someone spray painted them on.
Yeah this seems to me pretty standard (sadly), and your large display may be exacerbating it like you said. We all have this grain effect to some degree and it's more about managing it rather than eliminating it. I don't know how RT or other lighting effects might be affecting it either. I'm not using DLSS since it's not officially supported. I've just managed with adjusting resolution/image quality in-game.
I would suggest turning Raytracing and perhaps screen space reflections off temporarily to see how that affects the grain and if it's worth it for you. Other than that you can join me in wishing for TAA to die as it seems to be a big culprit of these graphical artifacts/rendering decisions by developers.
The issue you're describing is more to do with OLEDs when trying to present 'near black' content, such as the shadows you described. I know what you're talking about. RE4 actually uses no film grain, as far as I'm aware. I've seen the issue in other games as well, that feature no film grain. The image can appear 'grainy / noisy' in shadowed / grey areas. There are many people asking about this on OLED forums on the internet. Bear in mind, we're using these TVs as monitors, when they're in fact made to be used from living room couch distance, where this 'issue' would be non-existant to our eyes.
Honestly though, I'd recommend not using FSR 2, and instead try using DLSS/DLAA via reframework, DLDSR + TAA if you don't want to deal with that, OR try using Reshade.
I'm using dlss, never noticed any grain.
It also adds a ton of grain to all alpha transparencies.