I kind of agree but mostly don't. I mean basically games that were the best of their kind last gen are now able to be made with the most minimal of efforts as launch titles this gen and even still there is big improvement.
I think the true 'knee' if you will. Will occur at 1080p / 60 FPS type stuff. It's where the atmospheric effects and the amount of things that can pull you out of a game are removed. I believe in year 4-5 of this generation. We will potentially have hit a point where the PS5, etc will need to be quite different in their approach due to diminishing returns. Even still, look at things like the original 'Deep Down' gameplay trailer. Those 'in-engine' aspects that look fantastic. That's how I envision future games to look like.
However, there is always room for improvements. This gen, we'll get texture improvements and larger scale things. In future generations, AI / Interaction with environment / Human design / etc will all take bigger roles.
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