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Squilliam said:
This is a pet peeve of mine. You should really replace the term "graphics" with the term "game engine".

What you want is a good quality game engine to produce good fidelity on the art assets and an appropriate game world.

What you also want is good artistry in the game to make that world come to life.

So good art on a good engine should yield you great looking games.

One question I have to ask is: Does Nintendo offer their game engines for use by third party developers? If not, why the hell not? Sony does this, and so does Microsoft... So it should be a given that developers have access to a good basic game engine.

 Actually I think Nintendo usually make a game specific engine.... occasionally they willimprove upon an old engine for a games sequel (like LoZ:TP used the same basic engine as WIndwaker, but they stripped most of it down to change it)

The reason 3rd parties are not making an effort is that they are trying to use engines designed for PS2 on the Wii... hopefully the Wii will break out of this when people realise it's popularity is not going to wane suddenly, and therefore dvelopers will start making multi-purpose engines for it that can be loaned to companies.