Disclaimer: My opinion.
I remember the PS1 games, and some of the PS2 game all came with lots of FMVs (CG Full recorded Movies) that were never at par with the actual game play. Those FMVs felt like that was the original artistic image the creators had in mind when they made the game, but could not achieve it because the technology was too expensive or didn't exist at the time.
Fast forward to today, people expect parity between their game-play and cut scenes, and the better a game looks, the more attention it gets (it's eye candy). Graphics play a big role now, but not as much as one may think. I like to think of it as cake icing. If the game-play and story (flavor y topping of a cake) does not sit well with the consumer, then the graphics (icing) not provide the punch needed to make it a great product.
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