Graphically, games have improved a ton over the past 30 years:
Mario Bros, 1983
Super Mario Bros. 3, 1990
Super Mario World, 1991
Mario 64, 1996
Super Mario Sunshine, 2002
Super Mario Galaxy 2, 2010
New Super Mario Bros. U, 2012
But, I think we are at a wall with the new hardware that is coming out, the limitation is not due to the hardware's power, but rather the cost of developing assets/animations/etc. and the limit of ability of the people creating those.
That said, I think developers need to get back basics.
Games should be fun to play.
I find that too many games coming out nowadays focus on cutscenes/quick time events and are pitifully easy to beat (and to top it off, they often have repetitive/empty/or boring game worlds). I actually ended up with less PS3/Wii games than I have PS1/PS2/PSP/DS/or GC games.
Lately, I have been going back buying pre-2005 games that I have never heard of.
It has been a ton of fun playing these (new to me) old games.
I just hope the good games keep coming to 3DS and Vita. It seems to be the last bastion.
