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Onimusha12 said:

But still this must illude your question. Allow me to directly adress it. You have to understand, its not just higher graphics that are the issue here, its higher graphics that supercede the threshold of the current economy and development infrastructure. You're forcing an industry to make more expensive and graphically powerful games yet still be released at a competitive pace. Something has got to give in this equation. Graphics are the paramount priority in this equation, they don't necessaraly make the game, but without them the game isn't visually a "next gen game", it can't brag up impressive screenshots, it can't excite the hardcore crowd.

I think expense is the defining problem (more so than any perceived gameplay trade off), however I also think that as artist/design tools improve that we will see these costs reduced over time. Essentially you could see it as a painter given a small paint brush (what you would use for canvas work) and being told to paint a building with it versus having professional painter equipment. You may end up with the same result however one set of tools will be far less efficient than the other.

I don't believe that great graphics are a downfall however I do not believe that the level some companies are striving for and the standard that is quickly taking shape for PS3/360 games is financially acceptible at this time. I look forward to the relevant tools improving and game development costs for visually appealing games coming down to a more reasonable range.