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lol diminishing returns won't be a problem until video games can rival 2009 CGI like Avatar in real-time, we're nowhere near there yet. The PS5 might come close but it's only by the time the PS6 launches, 20+ years from now, when diminishing returns means that games won't get much or any better looking. Until then there's loads of huge improvements to be made to lighting, character models, animation etc.

Besides, PS4/X1 launch exclusvies already completely blow PS3/360 launch exclusives away and this is just the start, they will get better and better looking.