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First of all, I would take this with a grain of salt, as it's still early and is only coming from the mouth of one game developer, based only on what he's seen so far..

Second, even if what he said is true, I wouldn't really care, as long as it is priced appropriately ($200-$300 at launch). I think it's safe to say graphics have reached the point of "good enough." If I can get graphics of Gears 3 and Skyrim for my Wii U games, I'm a happy camper. And frankly, I don't see how graphics CAN get much better anyway, at least not to the point of making it very noticeable and warranting the purchase of an entirely new console. There is a reason MS and Sony are holding off on their new consoles, and it's not just because of the sales, but because they realize it would be difficult to convince consumers to make the jump from the current HD consoles to the new ones, since the current consoles' graphics are "good enough."