It's all about gameplay, but better hardware can create better more believable worlds and help improve gameplay, or improve elements that support gameplay. Better A.I., physics, lighting and decent framerate are important things to look for. Of course there are other important elements that are not tied to hardware - like story telling. Some games have more interesting stories on the SNES than the PS3/360. I value a powerful (or at least capable) hardware, but I also value gameplay. There have been games that didn't require much resources that were fantastic.
Playstation = The Beast from the East

Sony + Nintendo = WIN! PS3 + PSV + PS4 + Wii U + 3DS







