It's a damn good point, as many have said.
For example, the Wii may not be the most powerful console, but games like Kirby's Epic Yarn and Okami look better than 95% of PS360 games, because of the art-style, the feel, the mechanics etc.
Sure, good graphics are nice, but you reach a point where you can't improve them furhter, where they don't GIVE you anything. Aesthetics and gameplay can always be improved.







