As I see it, very soon we will reach a point where the cost of software development, rather than hardware limitations, will hinder any serious graphical improvements. From that point on, graphics will improve on an ongoing basis - mainly with new advances in efficient coding and implementation of graphics. For Khuutra's scenario to become economically viable, we need a lot more than just improvements in processing power.
I suspect that even with the dawn of the text generation, we will reach the point when developers realize cutting-edge graphics are not the best way of making "the best game possible" (which, let's face it, is a large factor in why many developer's support of the HD consoles - and I can certainly understand that; why settle for less when you can have more? I suppose, Sky Render would lecture me about the market not caring for this - after all, some games do not even need graphics - but as always there's the creative aspect as well - which, by the way, is why NES graphics were fucking insufficient) nor is it the best way to increase sales.
