Call of Duty will undoubtedly carry on its legacy in the upcoming consoles too but it seems that the latest rumor from Official XBOX Magazine says that the studio could be planning on using the Unreal Engine 4 which was recently showcased at GDC 2012 to be more optimized and easier to work with could be the next engine used by developers for the next Call of Duty game on the next generation of consoles, while this is still a rumor it does seem plausible considering that the next generation consoles (except the Wii-U) could still be prepped for the Unreal Engine 4.
It seems that according to the latest rumor from XBOX Official Magazine states that the next generation of consoles (they talk about the XBOX 720 specifically though but I doubt the developers would develop the game on various engines for various consoles) The Unreal Engine can add the Battlefield Magic of destructible environments and more realism in the Call of Duty games which is a lacking feature in the series and hopefully if the rumors do hold to be true it would help Call of Duty in their future games and considering how amazing the tech demo looked I would say that the graphical face lift in next generation consoles would truly help increase their appeal to future gamers.
According to OXM (all of the below is taken from the Source):
Infinity Ward also has an eye out for a technical visual effects artist “to help raise the bar for visual effects on current and next generation hardware”. Said artist will “focus on large complex destruction sequence simulations and making worlds that are more alive, animated and interactive.” How very Frostbitey of you, Modern Warfare. Among the latter’s focal areas are “wildlife”, “animated environment elements like blowing cloth, foliage” and “destructibles”.
This can only mean that the studio is looking to work with a newer engine for the next generation hardware (i.e next generation consoles) so that must mean that the rumor should be more or less true considering that the studio will have to up their graphics to appeal to the games who want gorgeous graphics in the next generation consoles.