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Tbh, I would have said games don't need to look better than Crysis back in the day. I would have said games don't need to look better than Witcher 3 just last year (hell I'd still say it now). But in the end In always quite pleased and amazed to see how much better they can look given time.

Also, from a hardware developers perspective the answer is quite clearly yes, they do need to look better, because they're trying to sell you new products.