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I think this needs to be separated into 2D and 3D:

2D: 4th gen. 2D games from this gen still look great and convey what the artists set out to do. They could benefit from some extra effects and res, but still more than playable.

3D: I would go with last gen. 5th gen games have aged terribly, 6th gen games vary and although you do get some nice looking games they often have very obvious cut backs that can break you out of immersion.