Implications of finite computational resources on philosophical idea that we may live in an "endless-simulation"

The philosophical idea that we may live in an endless-simulation, where given world spawns other sub-worlds which are capable of simulating whole parent world completely from first principles is very popular among popular culture. However it is rarely justified in the perspective that initial computer/world has only limited amount of resources which must be somehow divided between other sub-computers in the lower simulation recursive levels. In this paper I try to inject some limitations of such view and pragmatic approach to this idea.