the tech for graphics, etc. to focus on that point, is always jumping hugely in general - videogames just rides it's coat tails.
However, with the rising costs of developments due to increasing graphics, I think the desire for big jumps is slowing, and so it is likely that the focus next gen will be less on pure graphical horsepower and more on the overall gaming experience plus linking to the ever evolving online medium (one area where Nintendo lag which could give them trouble next gen IMO unless they're careful).
I think you're also going to see a focus more on SDK, development tools and methods of reducing costs. If that succeeds, then I expect to see (at some point) another focus on big graphical jumps. Assuming Avatar, etc. really is the start of a trend then obviously we might see 3D joining motion controls as more of a standard than a curio.
Try to be reasonable... its easier than you think...
