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It's all about size, and delivery, as several others have stated. Although, PS4 has a ways to go before coming on par with the PC, spoken as a PS4/PC gamer, graphics are hitting a point where I'm not certain other than texture quality, much can be improved. New techniques like animal fur physics will continue to be added, but for the most part, we're reaching a plateau.

I'd expect game consoles to become much smaller and power efficient over time, as well as improve on resolution and texture quality, load times, and the like.

Then again, people said this same sort of stuff around the launch of the Xbox 360 and PS3. I'm sure there are plenty of improvements to go on for at least another generation.