Better graphics adds more realism, not just in terms of looks but also in gameplay depth. I mean, more or less.
Besides, if it weren't for the graphical improvements, some new categories of games just wouldn't had popped up. For example, how would stealth games like MGS or Splinter Cell look on a 8-bit console! Gameplay variations will be very limited if u just stick to one technology. New graphics make games more immersive.
Anyway, dont you ever get tired of playing games with the same old graphics over and over?!
In a not very far away future I for one hope to see health bars in games (shooters) disappear and be replaced by real handicaps like getting your legs shot off so you can't walk or fingers blown off so you can't shoot withthat specific hand etc... But for that we need the graphic enginesto improve even more ;)
Again, I am not a sucker for things to look extraordinary beautiful, but I do love the realismgood graphics adds tothe gameplay part.
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