I think the problem is at the end of the day you truly don't know what innovation actually is. You discount all the innovation that actually happens due to better hardware because it doesn't help your argument. You have even gone as far as saying people doing stuff with less are "the real art". I mean that's laughable and ignorant to those working in the field.
At the end of the day you take something like Mario Kart 8. I love Mario Kart, I grew up on it its an enjoyable experience. Nobody in game development are playing that game and being like "Wow I just don't know how they did this. Nobody could pull this off". No, just about any reasonable developer could make that game. They could have built that game on better hardware years and years ago. On the flip side, they play a game like Uncharted 4 and most in the industry cannot even fathom, even if they had the budget, how to pull that game off. It takes engineers and artists that most developers don't have. Most developers in college classes can make half the Nintendo models in their games. And thats what you don't get because you only see it as a fan and from the gameplay. If you are in the field, you want to be the one delivering the gameplay and wow experience of an Uncharted or something push the fold like that. No1 is wow'd by something like Mario Kart is just fun to play.
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