Well, it depends on the competition, doesn't it? There's a possibility that the competition (MS, Sony or any newcomers) acknowledge that graphics have become a commodity and hence don't compete on that basis either. Or they may push forward along the same path, we don't know yet.
A game I'm developing with some friends:
www.xnagg.com/zombieasteroids/publish.htm
It is largely a technical exercise but feedback is appreciated.