I think graphics will improve, yeah, but not in such a significant way, or at least that won't be such a big selling point as it used to be, as someone stated before me.
To tell you the truth, back in the days when I got my N64 graphics were a HUGE issue for me. Nowadays, though I enjoy the beauty of Uncharted, Ninja Gaiden Sigma and so on, I am much more interested in art direction. That's why Muramasa is one of the games whose visuals I fell in love this generation.
And yes, now more than ever, I am looking for both inmersive experiences and loads of fun. I am having a blast playing games from the prior generation that I missed and in most cases I am enjoying the visuals very much too.
I guess that's what a portion of the gamer population will be looking for on next generation. I mean immersive and fun experiences. And of course, a great online community.
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