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I think there is a sizable population who care about cars enough that even current production models aren't fast enough for them. There is still quite a bit of room to grow in speed.

But it's expensive, horribly expensive. And what you gain in speed you lose in being able to park easily, room to stash the shopping, fuel consumption and so on.

Sure, graphics will continue to improve, but I doubt they'll improve much more than now, if at all, while remaining mass market. Development cost caps it out.

Unless you get to the stage where you build the console around the game enginerather than the other way round - but that will be one expensive, specialised, niche beast. You won't buy one, you will rent time on it.

Back to the arcade days.