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When playing a game like doom3 on PC in the dark and theres a sense of realism and a hightened sense of fear do graphics matter???? lets just stick with pong then.

Or how about F.E.A.R. very creepy and the it pushed the envlope for graphics when it was released.

Still gameplay is what genre of games a person likes best and why they like it.
some genres horror and shooters racers gran turismo forza are more compelling as they get closer and closer to reality.

would anybody want realism out of Mario???? or Mario cart????

No and no one expects it either. does that make realism in gaming bad or lack of realism bad?????

Not at all because what works for Ninty fan might not work for Sony or MS fan and vice versa.

Personally I love Cod4 in 1080p on a 5.1 dolby digital sound system. the gameplay is great, Crysis on my new 5600 amd 9800 gtx is amazing too.

Yes crysis has amazing graphics still the bouncer on PS2 looked great with its 2 hour campaign and 4 player no stradegy hack and slash fight system. so beauty did not make the game graphics and game play togeher is what is really needed.

because there are some beautiful games that suck out there.